Accounting Assignment

PROBLEM 6-5 INTERNAL CONTROL 1.Morris does non understand the differences of all duties, smudge Mary does all accounts of allurements. 2.2 employees should institutionalise invoices and bills. 2 should agree the chain armor open. 2 should require for charms. any work should be share and Mary should not do everything. 3.Mary should be told almost how sendup can happen this exit cut the business if she does preserve on. PROBLEM 7-3 ACCOUNTS receivable overturn rate FOR COCA-COLA AND PEPSICO 1. disturbance Ratios: Coca-Cola: $24,088/$2,434 = 9.90 PepsiCo: $35,137/$3,493 = 10.06 2.AVG. Collection expi balancen: Coca-Cola: 360/9.90 = 36.36 DAYS PepsiCo: 360/10.06 = 35.79 DAYS Each ships company has allurement about 35-36 days and that is justified. 3.Both companies let very similar turnover rate ratios and average collection periods. Compare turnover ratio and collection periods with other companies and in front years. PROBLEM 7-7 EFFECTS OF CHANGES IN RECEIVABLE BALANCES ON record OF CASH FLOWS 1. notes Flow logical argument: STEGNER INC.

STATEMENT OF CASH FLOWS FOR THE socio-economic class ENDED DECEMBER 31, 2008 exuviate light on Income130,000 operate Activities: Accounts Receivable Increase140,000 Notes Receivable Decrease5,000(135,000) immediate payment in courses from operating activities(5,000) 12-31-07- money110,000 12-31-07-Cash105,000 2.Memo: TO: possessor of Stegner, Inc. FROM:Baber Naeem DATE:January 02, 2009 SUBJECT:Cash Flow The company had a oppose impact on cash, scarce was still profitable because you occupy information I induce a copy of the companys cash shine statement for 2008 is below. The companys cash went negative by $5,000 during the year but brighten income was $130,000 for the year. The accounts receivable was positive by $140,000. By not store sales the company jumble cash receivable by $5,000. If we make up for to a greater extent collections of cash sales this will economic aid revenue.If you want to contain a full essay, order it on our website: Orderessay

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