As ceo of your company, you've been going over your financial statements and have noticed something disturbing. you perform a horizontal analysis and find that sales have been increasing at a rate of 3 percent per year, while inventory has risen at a rate of 29 percent per year. because the gap between sales growth and growth of inventory is so large, the ceo should assume fraud has occurred and proceed accordingly.
1. could fraud be occurring? why or why not? 2. assuming that fraud is being committed ,how would you investigate?

He following data come from the financial statements of riley company for the year ended march​ 31, 2017 ​(in millions). ​(click the icon to view the​ information.) requirements 1. prepare a cash flow statement for the year ended march​ 31, 2017. not all items given appear on the cash flow statement. 2. what activities provided the largest source of​ cash? is this a sign of financial strength or​ weakness? requirement 1. prepare a cash flow statement for the year ended march​ 31, 2017. not all items given appear on the cash flow statement. ​(use parentheses or a minus sign to show cash​ payments, cash​ outflows, and/or a net decrease in cash. if a box is not used in the statement of cash flow leave the box​ empty; do not select a label or enter a​ zero.) riley company statement of cash flows year ended march 31, 2017 millions cash flows from operating activities: net cash provided by (used for) operating activities