Janet Molly is one  most trusted employees. She never complains about her work and rarely misses work due to illness or vacation. The company has been successful over the years, but is now having cash flow problems. Because of the recent downturn in the company, you take a closer look at all the company’s financial records. When you ask Janet about the recent cash flow problems, she responds, ‘I don’t know what is going on. I only do the reporting. Ask those who manage the company.” This behaviour differs from Janet’s normal pleasant deportment. As you continue your investigation, you discover that the reported financial results do not match what the company is doing, but you cant determine why. You decided to investigate Janet further. 1. What are some behaviour and lifestyle changes that you should look for? 2. What resources can you use to conduct your research?

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter6: Business Expenses
Section: Chapter Questions
Problem 24P
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Janet Molly is one  most trusted employees. She never complains about her
work and rarely misses work due to illness or vacation. The company has been successful over
the years, but is now having cash flow problems. Because of the recent downturn in the
company, you take a closer look at all the company’s financial records. When you ask Janet
about the recent cash flow problems, she responds, ‘I don’t know what is going on. I only do the
reporting. Ask those who manage the company.” This behaviour differs from Janet’s normal
pleasant deportment. As you continue your investigation, you discover that the reported financial


results do not match what the company is doing, but you cant determine why. You decided to
investigate Janet further.


1. What are some behaviour and lifestyle changes that you should look for?


2. What resources can you use to conduct your research? 

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