You have been engaged by the management of HH4 Pty Ltd to conduct a forensic investigation into possible employee fraud. Like many businesses, HH4 was hit hard by the coronavirus global pandemic, and is only now starting to gain momentum. Despite this, HH4's financial results and cash position aren't as high as the owner would expect, which is why you've been called in to investigate. Your interviews with other employees draw your attention to Joan, a 56 year old single mother working as HH4's trusted accountant and payroll manager for the past 3 years. Joan has been acting strangely in recent months, with a dip in energy levels and friendliness at work. Not only has Joan seemed distracted when talking to her colleagues, it turns out that she has taken to sitting in her new car at lunchtime; reading and on her new iPhone - very odd behaviour from a person who previously had her lunch in the tea room while chatting the hour away. Some colleagues also reported seeing Joan taking double-dose pain killer medication for the 'splitting headache' that was plaguing her. Worried, colleagues who considered themselves friends with Joan, repeatedly attempted to reach out to her, but she remained uncharacteristically distant. In what some colleagues have interpreted as an attempt to cheer herself up, Joan has recently bought herself a new wardrobe of work clothes (designer suits and jewellery). According to her Facebook account, she also recently bought her son a PlayStation 5 Console - which he was very happy with her for buying! Joan has also been known to complain about her neighbours in recent times, and is rumoured to be in the market for a new house (she says she want nicer neighbours with children her young son can play with). Your investigations into Joan's financial affairs reveals the following about her: Assets: Cash on hand & at Bank Shares House Household contents Phone M/V Clothing & Jewellery Playstation Total Assets Liabilities: Loan Payable Total liabilities. Income: Salary Gambling Income Total Income Expenses: Mortgage expense Car costs Other Living Exp Total Expenses Show Transcribed Text Currently 62,400 48,000 720,000 180,000 2,400 90,000 12,840 1,200 1,116,840 360,000 360,000 137,280 42,000 179,280 6,792 6,240 62,400 75,432 12 mths ago 11,110 38,500 660,000 55,000 88 33,000 1,870 799,568 330,000 330,000 121,000 2,200 123,200 6,226 2,860 28,600 37,686 a. Use the net worth method to calculate current net worth (show all workings). b. Use the net worth method to calculate change in net worth from last year to current (show all workings). c. Use the net worth method to calculate required income for current financial position (show all workings). d. Use the net worth method to calculate unknown income required for current financial position (show all workings).

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Assets:
Cash on hand & at Bank
Shares
House
Household contents
Phone
M/V
Clothing & Jewellery
Playstation
Total Assets
Liabilities:
Loan Payable
Total liabilities
Income:
Salary
Gambling Income
Total Income
Expenses:
Mortgage expense
Car costs
Other Living Exp
Total Expenses
Currently
62,400
48,000
720,000
180,000
2,400
90,000
12,840
1,200
1,116,840
360,000
360,000
137,280
42,000
179,280
6,792
6,240
62,400
75,432
12 mths ago
11,110
38,500
660,000
55,000
88
33,000
1,870
799,568
330,000
330,000
121,000
2,200
123,200
6,226
2,860
28,600
37,686
Transcribed Image Text:Assets: Cash on hand & at Bank Shares House Household contents Phone M/V Clothing & Jewellery Playstation Total Assets Liabilities: Loan Payable Total liabilities Income: Salary Gambling Income Total Income Expenses: Mortgage expense Car costs Other Living Exp Total Expenses Currently 62,400 48,000 720,000 180,000 2,400 90,000 12,840 1,200 1,116,840 360,000 360,000 137,280 42,000 179,280 6,792 6,240 62,400 75,432 12 mths ago 11,110 38,500 660,000 55,000 88 33,000 1,870 799,568 330,000 330,000 121,000 2,200 123,200 6,226 2,860 28,600 37,686
4:09
Chegg Home Expert Q&A
Student question
Assets:
Cash on hand & at Bank
Shares
House
Household contents
Phone
M/V
Clothing & lewellery
Playstation
Total Assets
Liabilities:
You have been engaged by the management of HH4 Pty Ltd to conduct a forensic
investigation into possible employee fraud. Like many businesses, HH4 was hit hard by the
coronavirus global pandemic, and is only now starting to gain momentum. Despite this, HH4's
financial results and cash position aren't as high as the owner would expect, which is why
you've been called in to investigate.
Loan Payable
Total liabilities
expert.chegg.com/qna/
Your interviews with other employees draw your attention to Joan, a 56 year old single mother
working as HH4's trusted accountant and payroll manager for the past 3 years. Joan has been
acting strangely in recent months, with a dip in energy levels and friendliness at work. Not only
has Joan seemed distracted when talking to her colleagues, it turns out that she has taken to
sitting in her new car at lunchtime; reading and on her new iPhone - very odd behaviour from
a person who previously had her lunch in the tea room while chatting the hour away. Some
colleagues also reported seeing Joan taking double-dose pain killer medication for the
'splitting headache' that was plaguing her. Worried, colleagues who considered themselves
friends with Joan, repeatedly attempted to reach out to her, but she remained
uncharacteristically distant. In what some colleagues have interpreted as an attempt to cheer
herself up, Joan has recently bought herself a new wardrobe of work clothes (designer suits
and jewellery). According to her Facebook account, she also recently bought her son a
PlayStation 5 Console - which he was very happy with her for buying! Joan has also been
known to complain about her neighbours in recent times, and is rumoured to be in the market
for a new house (she says she want nicer neighbours with children her young son can play
with).
Your investigations into Joan's financial affairs reveals the following about her:
Income:
Salary
Gambling Income
Total Income
Expenses:
Mortgage expense
Car costs
Other Living Exp
Total Expenses
Show Transcribed Text
My answers
Currently
|||
62,400
48,000
720,000
180,000
2,400
90,000
12,840
1,200
1,116,840
=
360,000
360,000
137,280
42,000
179,280
6,792
6,240
62,400
75,432
12 mths ago
11,110
38,500
660,000
55,000
88
33,000
1,870
799,568
0.10
4G
KB/S LTED (52)
330,000
330,000
121,000
2,200
123,200
6,226
2,860
28,600
37,686
2]
Time Left: 00:03:38
a. Use the net worth method to calculate current net worth (show all workings).
b. Use the net worth method to calculate change in net worth from last year to current (show
all workings).
c. Use the net worth method to calculate required income for current financial position (show
all workings).
d. Use the net worth method to calculate unknown income required for current financial
position (show all workings).
A
Transcribed Image Text:4:09 Chegg Home Expert Q&A Student question Assets: Cash on hand & at Bank Shares House Household contents Phone M/V Clothing & lewellery Playstation Total Assets Liabilities: You have been engaged by the management of HH4 Pty Ltd to conduct a forensic investigation into possible employee fraud. Like many businesses, HH4 was hit hard by the coronavirus global pandemic, and is only now starting to gain momentum. Despite this, HH4's financial results and cash position aren't as high as the owner would expect, which is why you've been called in to investigate. Loan Payable Total liabilities expert.chegg.com/qna/ Your interviews with other employees draw your attention to Joan, a 56 year old single mother working as HH4's trusted accountant and payroll manager for the past 3 years. Joan has been acting strangely in recent months, with a dip in energy levels and friendliness at work. Not only has Joan seemed distracted when talking to her colleagues, it turns out that she has taken to sitting in her new car at lunchtime; reading and on her new iPhone - very odd behaviour from a person who previously had her lunch in the tea room while chatting the hour away. Some colleagues also reported seeing Joan taking double-dose pain killer medication for the 'splitting headache' that was plaguing her. Worried, colleagues who considered themselves friends with Joan, repeatedly attempted to reach out to her, but she remained uncharacteristically distant. In what some colleagues have interpreted as an attempt to cheer herself up, Joan has recently bought herself a new wardrobe of work clothes (designer suits and jewellery). According to her Facebook account, she also recently bought her son a PlayStation 5 Console - which he was very happy with her for buying! Joan has also been known to complain about her neighbours in recent times, and is rumoured to be in the market for a new house (she says she want nicer neighbours with children her young son can play with). Your investigations into Joan's financial affairs reveals the following about her: Income: Salary Gambling Income Total Income Expenses: Mortgage expense Car costs Other Living Exp Total Expenses Show Transcribed Text My answers Currently ||| 62,400 48,000 720,000 180,000 2,400 90,000 12,840 1,200 1,116,840 = 360,000 360,000 137,280 42,000 179,280 6,792 6,240 62,400 75,432 12 mths ago 11,110 38,500 660,000 55,000 88 33,000 1,870 799,568 0.10 4G KB/S LTED (52) 330,000 330,000 121,000 2,200 123,200 6,226 2,860 28,600 37,686 2] Time Left: 00:03:38 a. Use the net worth method to calculate current net worth (show all workings). b. Use the net worth method to calculate change in net worth from last year to current (show all workings). c. Use the net worth method to calculate required income for current financial position (show all workings). d. Use the net worth method to calculate unknown income required for current financial position (show all workings). A
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