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?