Net worth analysis is performed when fraud has been discovered or is strongly suspected and the Information to calculate a suspect's net worth can be obtained (e.g., asset and liability records, bank accounts). The procedure used is to calculate the person's change In net worth (excluding changes in market values of assets) and to Identify the known sources of funds to finance the changes. Any difference between the change in net worth and the known sources of funds is called funds from unknown sources, which might Include ill-gotten gains. Nero has worked for Bonne Consulting Group (BCG) as the executive secretary for administration for nearly 10 years. Her dedication has earned her a reputation as an outstanding employee and has resulted in Increasing responsibilities. Nero is also a suspect In a fraud. During Nero's first five years of employment, BCG subcontracted all of its feasibility and marketing studies through Jackson & Company. This relationship was terminated because Jackson & Company merged with a larger, more expensive consulting group. At the time of termination, Nero and her supervisor were forced to select a new firm to conduct BCG's market research. However, Nero never Informed the accounting department that the Jackson & Company account had been closed. Because her supervisor allowed Nero to sign the payment voucher for services rendered, she was able to continue to process checks made payable to Jackson's account. Nero was trusted to be the only signature required to authorize payments less than $10,000. The Ing department continued to write the checks and Nero took responsibility for delivering the checks. She opened a bank account in a nearby city under the name of Jackson & Company, where she made the deposits. Nero's financial records have been obtained by subpoena. Exhibit 6.59.1 provides a summary of the data obtained from her records. Required: You have been hired to estimate the amount of loss by estimating Nero's "funds from unknown sources" that financed her comfortable life style. Note: Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. End Year 1 End Year 2 End Year 3 Assets (list): Residence Stocks and bonds Automobiles Certificate of deposit Cash Total Assets Liabilities: Mortgage Balance Auto loan Total liabilities Net worth Change in net worth Total expenses Increase in net worth + expenses Known income Funds from unknown sourcesYear 1 Year 2 Year 3 Assets: Residence $ 100,000 $ 100,000 $ 100,000 Stocks and bonds 36,000 30,0008 42,000 Automobiles 28,800 20,000 49,000 Certificate of deposit 58,0080 5e,0008 58,000 Cash 6,800 12,000 14,000 Liabilities: Mortgage balance 98,0080 58,0006 & Auto loan 18,0080 = = Income: Salary 34,000 36,009 Other 6,000 6,000 Expenses: Scheduled mortgage payments 6,000 6,000 Auto loan payments 4,808 - Other living expenses 20,0008 22,000