Accounting Assignment

PROBLEM 6-5 INTERNAL CONTROL 1.Morris does not understand the differences of all told duties, speckle Mary does all accounts of allurements. 2.2 employees should mail invoices and bills. 2 should equalize the mail open. 2 should require for ingatherings. All work should be shared and Mary should not do everything. 3.Mary should be told about how fraud can happen this allow cut the caper if she does continue on. PROBLEM 7-3 ACCOUNTS receivable TURNOVER 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. aggregation period: Coca-Cola: 360/9.90 = 36.36 DAYS PepsiCo: 360/10.06 = 35.79 DAYS Each social club has collection about 35-36 days and that is justified. 3.Both companies let very similar employee turnover rate proportions and average collection periods. Compare turnover ratio and collection periods with other companies and earlier years. PROBLEM 7-7 EFFECTS OF CHANGES IN RECEIVABLE BALANCES ON STATEMENT OF CASH FLOWS 1. notes Flow line of reasoning: STEGNER INC. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2008 purge light on Income130,000 Operating Activities: Accounts Receivable Increase140,000 Notes Receivable Decrease5,000(135,000) gold in courses from operating activities(5,000) 12-31-07- specie110,000 12-31-07-Cash105,000 2.Memo: TO:Owner of Stegner, Inc. FROM:Baber Naeem DATE:January 02, 2009 SUBJECT:Cash Flow The company had a interdict impact on cash, precisely was still profitable because you need information I have a copy of the companys cash flow statement for 2008 is below. The companys cash went negative by $5,000 during the year but net income was $130,000 for the year. The accounts receivable was positive(p) by $140,000. By not collecting sales the company mixed-up cash receivable by $5,000. If we make up for to a greater extent collections of cash sales this will help revenue.If y ou want to contain a full essay, grade it ! on our website: OrderCustomPaper.com

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