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Surprise Company provided the following comparative balance sheets and statements of income.

1. Calculate all ratios needed to determine if Surprise Company is possibly underreporting accounts payable in Excel.
2. If you detect possible fraud, explain why you think it might exist.

Consolidated Statements of Income	2018	2017	2016
Revenues	26,434	22,373	18,639
Cost of Goods Sold	18,101	18,061	15,306
Gross Margin	8,333	4,312	3,333
Operating Expenses	5,328	3,412	2,865
Operating Income before taxes	2,805	700	368
Income Taxes	1,062	220	47
Net Income	1,743	480	321
Consolidated Balance Sheets	2018	2017	2016
Assets:
Current Assets
Cash and cash receivable	1,442	751	217
Receivables	5,502	4,015	3,229
Inventories	1,424	1,012	800
Deferred income taxes	751	202	356
Total current assets	9,119	5,980	4,602
Land	22,447	15,139	11,945
Buildings	10,882	8,375	7,598
Machinery	6,133	4,908	3,411
Accumulated depreciation	-296	-205	-135
Total Assets	48,285	34,197	27,421
Liabilities & Stockholder's equity
Current liabilities
Accounts Payable	5,503	4,012	4,658
Taxes Payable	686	443	135
Total Current Liabilities	6,189	4,455	4,793
Long-term Debt	16,887	16,015	19,446
Deferred income taxes	745	462	254
Stockholder's equity
Common Stock	22,120	12,664	2,807
Retained Earnings	2,344	601	121
Total Liabilities & Stockholder's equity	48,285	34,197	27,421

Surprise Company provided the following comparative balance sheets and statements of income. 1. Calculate all ratios needed to determine if Surprise Company is possibly underreporting accounts payable in Excel. 2. If you detect possible fraud, explain why you think it might exist. Consolidated Statements of Income 2018 2017 2016 Revenues 26,434 22,373 18,639 Cost of Goods Sold 18,101 18,061 15,306 Gross Margin 8,333 4,312 3,333 Operating Expenses 5,328 3,412 2,865 Operating Income before taxes 2,805 700 368 Income Taxes 1,062 220 47 Net Income 1,743 480 321 Consolidated Balance Sheets 2018 2017 2016 Assets: Current Assets Cash and cash receivable 1,442 751 217 Receivables 5,502 4,015 3,229 Inventories 1,424 1,012 800 Deferred income taxes 751 202 356 Total current assets 9,119 5,980 4,602 Land 22,447 15,139 11,945 Buildings 10,882 8,375 7,598 Machinery 6,133 4,908 3,411 Accumulated depreciation -296 -205 -135 Total Assets 48,285 34,197 27,421 Liabilities & Stockholder's equity Current liabilities Accounts Payable 5,503 4,012 4,658 Taxes Payable 686 443 135 Total Current Liabilities 6,189 4,455 4,793 Long-term Debt 16,887 16,015 19,446 Deferred income taxes 745 462 254 Stockholder's equity Common Stock 22,120 12,664 2,807 Retained Earnings 2,344 601 121 Total Liabilities & Stockholder's equity 48,285 34,197 27,421 Surprise Company provided the following comparative balance sheets and statements of income. 1. Calculate all ratios needed to determine if Surprise Company is possibly underreporting accounts payable in Excel. 2. If you detect possible fraud, explain why you think it might exist. Consolidated Statements of Income 2018 2017 2016 Revenues 26,434 22,373 18,639 Cost of Goods Sold 18,101 18,061 15,306 Gross Margin 8,333 4,312 3,333 Operating Expenses 5,328 3,412 2,865 Operating Income before taxes 2,805 700 368 Income Taxes 1,062 220 47 Net Income 1,743 480 321 Consolidated Balance Sheets 2018 2017 2016 Assets: Current Assets Cash and cash receivable 1,442 751 217 Receivables 5,502 4,015 3,229 Inventories 1,424 1,012 800 Deferred income taxes 751 202 356 Total current assets 9,119 5,980 4,602 Land 22,447 15,139 11,945 Buildings 10,882 8,375 7,598 Machinery 6,133 4,908 3,411 Accumulated depreciation -296 -205 -135 Total Assets 48,285 34,197 27,421 Liabilities & Stockholder's equity Current liabilities Accounts Payable 5,503 4,012 4,658 Taxes Payable 686 443 135 Total Current Liabilities 6,189 4,455 4,793 Long-term Debt 16,887 16,015 19,446 Deferred income taxes 745 462 254 Stockholder's equity Common Stock 22,120 12,664 2,807 Retained Earnings 2,344 601 121 Total Liabilities & Stockholder's equity 48,285 34,197 27,421

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