In your text, at the end of Chapter 11, read Case Study 1. This case deals with the Chipmunk Company. You are hired to detect financial statement fraud.
After reviewing the balance sheet and statement of earnings provided in your text, complete the following analyses as outlined in your textbook:
- Calculate the 2008 and 2007 liquidity and equity ratios identified in the Ratio Analysis table included with the case study. Also calculate the change and the percentage change for the ratios and complete the table. (Formulas are given to shorten the time spent on the assignment – you do not need to recreate the table; just list your answers line by line in a Word document. )
- Analyze the Chipmunk Companyâ€™s ratios for both years and compare the figures with the given industry ratios. Based on the ratios identified, where do you think fraud may have occurred?
If using outside sources all source citation should adhere to the guidelines of the APA style guide.