Suppose you have passed the test to become a certified fraud examiner. You are working for an outside firm to help detect fraud for three different companies described below.

Final: Part 1

The following balance sheet is provided for Phoenix Company.

• Perform a horizontal analysis of the balance sheet in Excel and identify two items that appear to be unusual and could be possible symptoms of fraud. Explain your reasons why the two items could be potential fraud.

Balance Sheet	2016	2017	2018	2019
Cash	1000	1300	1500	1600
Accounts Receivable	250	475	700	1000
Inventory	600	725	875	1000
Notes Receivable	2000	1975	2075	2250
Total Assets	3850	4475	5150	5850
Accounts Payable	700	875	975	1125
Other Current Liabilities	200	325	375	450
Notes Payable	1200	1400	1500	1700
Total Liabilities	2100	2600	2850	3275
Stock Outstanding	1000	1000	1000	1000
Retained Earnings	725	875	1300	1575
Total Stockholder's equity	1750	1875	2300	2575
Total Liabilities and Stockholder's equity	3850	4475	5150	5850