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Using the financial statement data provided, complete the following assignments:
- Describe any symptoms of fraud
- Draw a conclusion about fraud predication and recommend next steps.
900 500 900 Assume that Alpha and Omega compete in the same four-digit SIC code industry and offer comparable products and services. The following table contains their reported financial performance and condition for the last two years: Alpha Company Omega Company Balance Sheet Year 1 Year 2 Analysis Year 1 Year 2 Analysis Assets-Cash 250 480 92% 250 480 92% Assets-Accounts Receivable 250 330 32% 250 530 1129 Assets-Long-Term 500 80% 500 80% Assets 1,000 1,710 71% 1,000 1,910 91% Liabilities-Current 400 750 88% 400 750 88% Liabilities-Long-Term 200 375 889 200 375 88% Liabilities 600 1,125 88% 600 1,125 88% Stockholders' Equity 400 585 46% 400 785 Liabilities and Stockholders' Equity 1,000 1,710 71% 1,000 1,910 Income Statement Revenues 1,200 2,200 83% 1,200 2,400 100% Costs of Goods Sold 500 925 85% 500 925 85% Gross Profit 700 1,275 82% 700 1,475 111% Operating Expenses 600 1,090 82% 600 1,090 82% Operating Income 100 185 85% 100 385 285% Statement of Cash Flows Operating Income 100 185 85% 100 385 285% Depreciation * Operating Cash 25 45 80% 25 -155 -720% Operating Cash Flows 125 230 84% 125 230 84% 96% 91%
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