As a real estate speculator, you are planning and able to buy a house that costs $200,000, borrowing the full amount with no money down with the goal of selling this same property in exactly one year. Mortgage interest rates are 5%, and the expected increase in housing prices is 2%. (All rates and percentages are annual values.) What is your expected capital gain/loss when you flip the house in one year

Greenbloom garden centers is a small, privately held corporation that has two stores in orlando, florida. the greenbloom family owns 100 percent of the company's stock, and family members manage the operations. sales at the company's stores have been growing rapidly, and there appears to be a market for the company's sales concept – providing bulk garden equipment and supplies at low prices. the controller prepares the company's financial statements, which are not audited. the company has no debt but is considering expanding to other cities in florida. such expansion may require long-term borrowings and is likely to reduce the family's day-to-day control of the operations. the family does not intend to sell stock in the company. required: discuss at least three factors that may make an audit necessary and potentially valuable for the company. be sure to consider the concept of information risk.