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Sherwood

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

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Contains solutions to Sherwood dilemma.

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