Balance Sheet
ABC COMPANY
BALANCE SHEET
AS OF DECEMBER 31, 2014
ASSETS 2014 2013 2012
Cu
ent assets
Cash $ 501,992 $ 434,215 $ 375,141
Accounts Receivable 335,272 302,514 241,764
Inventory 515,174 505,321 310,885
Prepaid Expenses 251,874 231,100 136,388
Total cu
ent assets $ 1,604,312 $ 1,473,150 $ 1,064,178
Property, plant and equipment 765,215 735,531 705,132
Accumulated depreciation (218,284) (196,842) (175,400)
TOTAL ASSETS $ 2,151,243 $ 2,011,839 $ 1,593,910
LIABILITIES
Cu
ent liabilities
Accounts payable $ 248,494 $ 366,864 $ 322,156
Accrued liabilities 122,192 216,533 215,474
Income taxes payable 10,645 25,698 22,349
Cu
ent portion of long-term debt 42,200 42,200 42,200
Total cu
ent liabilities $ 423,531 $ 651,295 $ 602,179
Long-term liabilities
Long-term debt 425,311 400,311 375,100
TOTAL LIABILITIES $ 848,842 $ 1,051,606 $ 977,279
STOCKHOLDERS' EQUITY
Common Stock $ 370,124 $ 356,758 $ 320,841
Additional paid-in-capital 29,546 24,881 21,910
Retained earnings 902,731 578,594 273,880
Total stockholders' equity $ 1,302,401 $ 960,233 $ 616,631
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,151,243 $ 2,011,839 $ 1,593,910
Income Statement
ABC COMPANY
INCOME STATEMENT
FOR THE PERIOD ENDED DECEMBER 31, 2014
2014 2013 2012
Sales $ 1,572,134 $ 1,413,581 $ 1,158,417
Cost of goods sold 601,215 556,721 500,702
Gross profit $ 970,919 $ 856,860 $ 657,715
EXPENSES
Advertising $ 55,153 $ 50,531 $ 42,150
Depreciation 21,442 21,442 21,442
Bad debts 20,151 18,934 17,943
Legal 17,261 10,207 9,701
Miscellaneous 91,014 31,214 29,104
Rent 148,321 142,078 141,143
Repairs and maintenance 14,315 13,642 11,932
Salaries and wages 47,121 45,312 39,142
Utilities 15,912 15,643 14,217
Total expenses $ 430,690 $ 349,003 $ 326,774
Net income before income tax $ 540,229 $ 507,857 $ 330,941
Income tax expense 216,092 203,143 132,376
NET INCOME $ 324,137 $ 304,714 $ 198,565
Number of shares of stock outstanding 35,913 26,786 23,712
Income Statement % Change
ABC COMPANY
INCOME STATEMENT
FOR THE PERIOD ENDED DECEMBER 31, 2014
2014 2013 CHANGE % CHANGE
Sales $ 1,572,134 $ 1,413,581
Cost of goods sold 601,215 556,721
Gross profit $ 970,919 $ 856,860
EXPENSES
Advertising $ 55,153 $ 50,531
Depreciation 21,442 21,442
Bad debts 20,151 18,934
Legal 17,261 10,207
Miscellaneous 91,014 31,214
Rent 148,321 142,078
Repairs and maintenance 14,315 13,642
Salaries and wages 47,121 45,312
Utilities 15,912 15,643
Total expenses $ 430,690 $ 349,003
Net income before income tax $ 540,229 $ 507,857
Income tax expense 216,092 203,143
NET INCOME $ 324,137 $ 304,714
Ratio Analysis
ABC COMPANY
RATIO ANALYSIS CALCULATION
December 31, 2014
2014 understated liabilities
LIABILITY FRAUD 12/31/14 12/31/13 CHANGE % CHANGE CALCULATION 2014 2013 ACCOUNTS PAYABLE /COST OF GOODS SOLD 248494 /601215 = 0.413
ACCOUNTS PAYABLE /COST OF GOODS SOLD 0.41 0.66 -0.246 -0.37 ACCOUNTS PAYABLE 248494 366864 ACCOUNTS PAYABLE / TOTAL LIABILITIES 248494/ 848842 = 0.293
ACCOUNTS PAYABLE / TOTAL LIABILITIES 0.29 0.35 -0.056 -0.16 COST OF GOODS SOLD 601,215 556721 ACCOUNTS PAYABLE/ Inventory 248494 /515174 = 0.482
ACCOUNTS PAYABLE/ INVENTORY 0.48 0.73 -0.244 -0.34 TOTAL LIABILTIES 848842 1051606
2014 overstated assets
ASSETS FRAUD INVENTORY 515174 505321 Accounts receivable/ business income 335272 / 540229 =0.6206
Accounts receivable/ Business income 0.62 0.60 0.025 0.04
LONG TERM DEBT 425311 400311 Cash/Total assets 501992 / XXXXXXXXXX =0.233
Cash/Total assets 0.23 0.216 0.014 0.06
STOCK HOLDER EQUITY 1302401 960,233 Inventory/Business income 515174 / 540229= 0.953
Inventory/Business income 0.95 0.995 -0.045 -0.05
Accounts Receivable 335,272 302,514
2013
Business income 540229 507857
ACCOUNTS PAYABLE /COST OF GOODS SOLD 366864 /556721 =0.659
Fixed assets 546931 538689
ACCOUNTS PAYABLE / TOTAL LIABILITIES 366864 / XXXXXXXXXX =0.349
Total assets 2151243 2011839
ACCOUNTS PAYABLE/ Inventory 366864 / 505321 =0.726
Cash 501992 434215
LONG TERM DEBT / STOCK HOLDER'S EQUITY 400311/ 960233 =0.416
Inventory 515174 505321
2013 overstated assets
Accounts receivable/ business income 302514 / 507857 =0.595
Cash/Total assets 434215 / XXXXXXXXXX=0.216
fixed asset calculation 2014 Inventory/Business income 505321 / 507857=0.995
765,215
(218,284)
546931
fixed asset calculation 2013
735,531
(196,842)
538,689
Sheet1
ABC COMPANY
BALANCE SHEET
AS OF DECEMBER 31, 2014
ASSETS 2014 % TOTAL ASSETS 2013 % TOTAL ASSETS 2012
Cu
ent assets
Cash $ 501,992 23.33% $ 434,215 21.58% $ 375,141
Accounts Receivable 335,272 15.59% 302,514 15.04% 241,764
Inventory 515,174 23.95% 505,321 25.12% 310,885
Prepaid Expenses 251,874 11.71% 231,100 11.49% 136,388
Total cu
ent assets $ 1,604,312 74.58% $ 1,473,150 73.22% $ 1,064,178
Property, plant and equipment 765,215 35.57% 735,531 36.56% 705,132
Accumulated depreciation (218,284) -10.15% (196,842) -9.78% (175,400)
TOTAL ASSETS $ 2,151,243 100.00% $ 2,011,839 100.00% $ 1,593,910
LIABILITIES
Cu
ent liabilities
Accounts payable $ 248,494 11.55% $ 366,864 18.24% $ 322,156
Accrued liabilities 122,192 5.68% 216,533 10.76% 215,474
Income taxes payable 10,645 0.49% 25,698 1.28% 22,349
Cu
ent portion of long-term debt 42,200 1.96% 42,200 2.10% 42,200
Total cu
ent liabilities $ 423,531 $ 651,295 $ 602,179
Long-term liabilities
Long-term debt 425,311 19.77% 400,311 19.90% 375,100
TOTAL LIABILITIES $ 848,842 $ 1,051,606 $ 977,279
STOCKHOLDERS' EQUITY
Common Stock $ 370,124 17.21% $ 356,758 17.73% $ 320,841
Additional paid-in-capital 29,546 1.37% 24,881 1.24% 21,910
Retained earnings 902,731 41.96% 578,594 28.76% 273,880
Total stockholders' equity $ 1,302,401 $ 960,233 $ 616,631
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,151,243 $ 2,011,839 $ 1,593,910
Sheet2
ABC COMPANY
BALANCE SHEET
AS OF DECEMBER 31, 2014
ASSETS 2014 2013
Cu
ent assets
Cash $ 501,992 $ 434,215
Accounts Receivable 335,272 302,514
Inventory 515,174 505,321
Prepaid Expenses 251,874 231,100
Total cu
ent assets $ 1,604,312 $ 1,473,150
Property, plant and equipment 765,215 735,531
Accumulated depreciation (218,284) (196,842)
TOTAL ASSETS $ 2,151,243 $ 2,011,839
LIABILITIES
Cu
ent liabilities
Accounts payable $ 248,494 $ 366,864
Accrued liabilities 122,192 216,533
Income taxes payable 10,645 25,698
Cu
ent portion of long-term debt 42,200 42,200
Total cu
ent liabilities $ 423,531 $ 651,295
Long-term liabilities
Long-term debt 425,311 400,311
TOTAL LIABILITIES $ 848,842 $ 1,051,606
STOCKHOLDERS' EQUITY
Common Stock $ 370,124 $ 356,758
Additional paid-in-capital 29,546 24,881
Retained earnings 902,731 578,594
Total stockholders' equity $ 1,302,401 $ 960,233
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,151,243 $ 2,011,839
Balance Sheet
ABC COMPANY
BALANCE SHEET
AS OF DECEMBER 31, 2014
ASSETS 2014 2013 2012
Cu
ent assets
Cash $ 501,992 $ 434,215 $ 375,141
Accounts Receivable 335,272 302,514 241,764
Inventory 515,174 505,321 310,885
Prepaid Expenses 251,874 231,100 136,388
Total cu
ent assets $ 1,604,312 $ 1,473,150 $ 1,064,178
Property, plant and equipment 765,215 735,531 705,132
Accumulated depreciation (218,284) (196,842) (175,400)
TOTAL ASSETS $ 2,151,243 $ 2,011,839 $ 1,593,910
LIABILITIES
Cu
ent liabilities
Accounts payable $ 248,494 $ 366,864 $ 322,156
Accrued liabilities 122,192 216,533 215,474
Income taxes payable 10,645 25,698 22,349
Cu
ent portion of long-term debt 42,200 42,200 42,200
Total cu
ent liabilities $ 423,531 $ 651,295 $ 602,179
Long-term liabilities
Long-term debt 425,311 400,311 375,100
TOTAL LIABILITIES $ 848,842 $ 1,051,606 $ 977,279
STOCKHOLDERS' EQUITY
Common Stock $ 370,124 $ 356,758 $ 320,841
Additional paid-in-capital 29,546 24,881 21,910
Retained earnings 902,731 578,594 273,880
Total stockholders' equity $ 1,302,401 $ 960,233 $ 616,631
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,151,243 $ 2,011,839 $ 1,593,910
Income Statement
ABC COMPANY
INCOME STATEMENT
FOR THE PERIOD ENDED DECEMBER 31, 2014
2014 2013 2012
Sales $ 1,572,134 $ 1,413,581 $ 1,158,417
Cost of goods sold 601,215 556,721 500,702
Gross profit $ 970,919 $ 856,860 $ 657,715
EXPENSES
Advertising $ 55,153 $ 50,531 $ 42,150
Depreciation 21,442 21,442 21,442
Bad debts 20,151 18,934 17,943
Legal 17,261 10,207 9,701
Miscellaneous 91,014 31,214 29,104
Rent 148,321 142,078 141,143
Repairs and maintenance 14,315 13,642 11,932
Salaries and wages 47,121 45,312 39,142
Utilities 15,912 15,643 14,217
Total expenses $ 430,690 $ 349,003 $ 326,774
Net income before income tax $ 540,229 $ 507,857 $ 330,941
Income tax expense 216,092 203,143 132,376
NET INCOME $ 324,137 $ 304,714 $ 198,565
Number of shares of stock outstanding 35,913 26,786 23,712
Income Statement % Change
ABC COMPANY
INCOME STATEMENT
FOR THE PERIOD ENDED DECEMBER 31, 2014
2014 2013 CHANGE % CHANGE
Sales $ 1,572,134 $ 1,413,581
Cost of goods sold 601,215 556,721
Gross profit $ 970,919 $ 856,860
EXPENSES
Advertising $ 55,153 $ 50,531
Depreciation 21,442 21,442
Bad debts 20,151 18,934
Legal 17,261 10,207
Miscellaneous 91,014 31,214
Rent 148,321 142,078
Repairs and maintenance 14,315 13,642
Salaries and wages 47,121 45,312
Utilities 15,912 15,643
Total expenses $ 430,690 $ 349,003
Net income before income tax $ 540,229 $ 507,857
Income tax expense 216,092 203,143
NET INCOME $ 324,137 $ 304,714
Ratio Analysis
ABC COMPANY
RATIO ANALYSIS CALCULATION
December 31, 2014
2014 understated liabilities
LIABILITY FRAUD 12/31/14 12/31/13 CHANGE % CHANGE CALCULATION 2014 2013 ACCOUNTS PAYABLE /COST OF GOODS SOLD 248494 /601215 = 0.413
ACCOUNTS PAYABLE /COST OF GOODS SOLD 0.41 0.66 -0.246 -0.37 ACCOUNTS PAYABLE 248494 366864 ACCOUNTS PAYABLE / TOTAL LIABILITIES 248494/ 848842 = 0.293
ACCOUNTS PAYABLE / TOTAL LIABILITIES 0.29 0.35 -0.056 -0.16 COST OF GOODS SOLD 601,215 556721 ACCOUNTS PAYABLE/ Inventory 248494 /515174 = 0.482
ACCOUNTS PAYABLE/ INVENTORY 0.48 0.73 -0.244 -0.34 TOTAL LIABILTIES 848842 1051606
2014 overstated assets
ASSETS FRAUD INVENTORY 515174 505321 Accounts receivable/ business income 335272 / 540229 =0.6206
Accounts receivable/ Business income 0.62 0.60 0.025 0.04
LONG TERM DEBT 425311 400311 Cash/Total assets 501992 / XXXXXXXXXX =0.233
Cash/Total assets 0.23 0.216 0.014 0.06
STOCK HOLDER EQUITY 1302401 960,233 Inventory/Business income 515174 / 540229= 0.953
Inventory/Business income 0.95 0.995 -0.045 -0.05