Perform vertical and/or horizontal analysis of the statements and identify two things that appear to be unusual and could be possible symptoms of fraud. The balance sheet and income statement for ABC Company for the years 2011 and 2012 are asfollows:

BALANCE SHEET Accounts receivable Inventory Total assets Accounts payable Notes payable Common stock Retained earnings Total liabilities and stockholders' equity Income Statement Net sales Cost of goods sold Gross margin Expenses: Salaries Warehousing costs Advertising Taxes Total expenses Net income 2011 460 1,000 $2,080 S580 500 $2,080 550 120 430 100 45 S 285 145 2012 300 730 $1510 310 100 700 $1510 840 160 680 150 120 75 435 245