The Case of Clever Inc
Clever, Inc., is a car manufacturer. Its 2015 income statement is as follows:
Clever. Inc. Income Statement for the Year Ended December 31, 2016 Sala moor 5204:00
Less cost of goods sold Coals =non Eapansis Nei income
Alexander, Inc, is a car rental agency based in Florida. Its 2015 income statement is as follows:
Alexander. Inc. Income Statement for the Year Ended December 31, 2016
Sala trent.. Events Net Income
S20.COD ISIXO
During 2015, both Clever, Inc., and Alexande , Inc, incurred a $1,000 fraud loss.
- How much additional revenue must each company generate to recover the losses from the fraud?
- Why are these amounts different?
- Which company will probably have to generate less revenue to recover the losses?
