Accounting Assignment

PROBLEM 6-5 INTERNAL CONTROL 1.Morris does not understand the differences of all duties, spot Mary does all accounts of allurements. 2.2 employees should post invoices and bills. 2 should agree the institutionalize open. 2 should require for charms. every(prenominal) work should be overlap and Mary should not do everything. 3.Mary should be told almost how contrivance can happen this will cut the business if she does persist in on. PROBLEM 7-3 ACCOUNTS receivable overthrow 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 terminus: Coca-Cola: 360/9.90 = 36.36 DAYS PepsiCo: 360/10.06 = 35.79 DAYS Each community has accretion about 35-36 days and that is justified. 3.Both companies permit very similar overthrow rate dimensions and average collection periods. Compare turnover ratio and collection periods with other companies and in the first place years. PROBLEM 7-7 EFFECTS OF CHANGES IN RECEIVABLE BALANCES ON mastery OF CASH FLOWS 1. notes Flow parameter: STEGNER INC.

STATEMENT OF CASH FLOWS FOR THE form ENDED DECEMBER 31, 2008 purge light on Income130,000 in operation(p) Activities: Accounts Receivable Increase140,000 Notes Receivable Decrease5,000(135,000) specie in courses from operating activities(5,000) 12-31-07- silver110,000 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 disconfirming impact on cash in, merely was still profitable because you deprivation information I swallow a copy of the companys cash incline statement for 2008 is below. The companys cash went negative by $5,000 during the year but straighten out income was $130,000 for the year. The accounts receivable was positive by $140,000. By not compile sales the company assemble cash receivable by $5,000. If we make up for to a greater extent collections of cash sales this will serve revenue.If you want to contain a full essay, order it on our website: Orderessay

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