The most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow by 25 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, and accounts payable increase spontaneously with sales. CROSBY, INC. 2017 Income Statement Sales $ 751,000 Costs 586,000 Other expenses 22,000 Earnings before interest and taxes $ 143,000 Interest paid 18,000 Taxable income $ 125,000 Taxes (23%) 28,750 Net income $ 96,250 Dividends $ 29,838 Addition to retained earnings 66,412 CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 21,040 Accounts payable $ 55,200 Accounts receivable 43,980 Notes payable 14,400 Inventory 95,960 Total $ 69,600 Total $ 160,980 Long-term debt $ 134,000 Fixed assets Owners’ equity Net plant and equipment $ 427,000 Common stock and paid-in surplus $ 116,500 Retained earnings 267,880 Total $ 384,380 Total assets $ 587,980 Total liabilities and owners’ equity $ 587,980 In 2017, the firm operated at 80 percent of capacity. Construct the pro forma income statement and balance sheet for the company. Assume that fixed assets are sold so that the company has a 100 percent asset utilization. (Do not round intermediate calculations.)

Each of the following scenarios is based on facts in anactual fraud. categorize each scenario as primarily indicating (1) anincentive to commit fraud, (2) an opportunity to commit fraud, or(3) a rationalization for committing fraud. also state your reasoningfor each scenario. a. there was intense pressure to keep the corporation ' stock from declining further. this pressure came from investors, analysts, and the ceo, whose financial well-being was significantly dependent on the corporation ' s stock price. b. a group of top-level management was compensated (mostly in the form of stock-options) well in excess of what would be considered normal for their positions in this industry. c. top management of the company closely guards internal financial information, to the extent that even some employees on a “need-to-know basis” are denied full access. d. managing specific financial ratios is very important to the company, and both management and analysts are keenly observant of variability in key ratios. key ratios for the company changed very little even though the ratios for the overall industry were quite volatile during the time period. e. in an effort to reduce certain accrued expenses to meet budget targets, the cfo directs the general accounting department to reallocate a division’s expenses by a significant amount. the general accounting department refuses to acquiesce to the request, but the journal entry is made trough the corporate office. an accountant in the general accounting department is uncomfortable with the journal entries required to reallocate divisional expenses. he brings his concerns to the cfo, who assures him that everything will be fine and that the entries are necessary. the accountant considers resigning, but he does not have another job lined up and is worried about supporting his family. therefore, he never voices his concerns to either the internal or external auditors. f. accounting records were either nonexistent or in a state of such disorganization that significant effort was required to locate or compile them.

Which is one solution to levy the complexity of the global matrix strategy with added customer-focused dimensions?

Why is efficiency an important economic goal?