125 230 Operating Cash Flows 1. Using the financial statement data provided, complete the following assignments: a. Describe any symptoms of fraud b. Draw a conclusion about fraud predication and recommend next steps. M SORECE 2. Assume that industry ratios were derived from a reputable s Compute the year 1 and year 2 ratios for Alpha and Omega: Alpha Company Ratios Year 1 Year 2 Industry Year 1 Omega Company an Year 20 Industry Current Ratio 0.63 ob 0.64 1.15 0.63 do 0.64 1.15 Debt-to-Assets Ratio 0.600 0.658 0.625 0.600 Com 0.589 0.625 Return on Assets 10% 11% 10% 10% 20% 10% Gross Margin 58% 58% 58% 58% 61% 58% Operating Cash Flow/Income 125% 124% 125% 125% 60% 125% Dupont Expression Ratios Risk-Assets-to-Equity 2.50 2.92 2.75 2.50 2.43 2.75 Revenue Generation-Asset Turn bongo1.20 di aniamo 1.29 1.25 1.20 1.26 1.25 Profits-Profit Margin Return on Equity 8% 25% Jan 8% 107 8% 8% 16% 8% 32% 27% 25% 49% 27% 3. Using your calculated ratios from assignment 2 in concert with the metrics calculated in assignment 1, complete the following assignments: a. Describe any symptoms of fraud b. Combine the findings in the ratio analysis with the metrics calculated in assignment 1 and draw a conclusion about fraud predication and recommend next steps. 4. Assume that nonfinancial metrics were derived from reliable public and internal sources. Complete the analysis of NFMs for Alph and Omega: