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.