The following two comparative balance sheets and statements of income are for XYZ Company for the years 2015-2017:

Calculate all ratios needed to determine if XYZ is possibly under reporting accounts payable. If you detect possible fraud, explain why you think it might exist.

Transcribed Image Text:

CONSOLIDATED BALANCE SHEETS- XYZ COMPANY 2017 2016 2015 Assets: Current assets Cash and cash $1,542 $851 $317 equivalents Receivables 5,602 4,115 3,329 Inventories 1,524 1,112 900 Deferred income taxes 851 302 456 Total current assets $9,519 $6,380 $5,002 Land 22,547 15,239 12,045 Buildings 10,982 8,475 7,698 Machinery 6,233 5,008 3,511 Accumulated (396) (305) (235) depreciation Total assets $48,885 $34.797 $28,021 Liabilities and Stock- holders' Equity: Current liabilities Accounts payable $5,603 $4,112 $4,758 Taxes payable 786 543 235 Total current $6,389 $4,655 $4,993 liabilities Long-term debt 16,987 16,115 19,546 Deferred income taxes 845 562 354 Stockholders' Equity: Common stock 22,220 12,764 2,907 Retained earnings 2,444 701 221 Total liabilities and stockholders' equity $48,885 $34.797 $28,021