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    Errors in Financial Statements. This is a real case where massive fraud was committed. The following financial statements are available for SHERWOOD REAL ESTATE COMPANY: (See attached word file for full problem description).

    Specifically, can you explain why the income statement shows a net loss and does not include revenues? The spreadsheet attached looks like the company had other real estate property assets...wouldn't those be considered revenues? I just want to make sure I am understanding things...and am not just yet.

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    Solution Preview

    The income statement shows no revenues because the only revenues they had before were from the sale of the property. If you remove ...

    Solution Summary

    Contains solutions to Sherwood dilemma.