Accounting Assignment

PROBLEM 6-5 INTERNAL CONTROL 1.Morris does not understand the differences of any duties, speckle Mary does all accounts of allurements. 2.2 employees should mail invoices and bills. 2 should chalk up the mail open. 2 should require for accruals. All work should be shared and Mary should not do everything. 3.Mary should be told virtually how fraud can happen this forget cut the stage business 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. show period: Coca-Cola: 360/9.90 = 36.36 DAYS PepsiCo: 360/10.06 = 35.79 DAYS Each beau monde has collection about 35-36 days and that is justified. 3.Both companies let very similar turnover rate balances and average collection periods. Compare turnover ratio and collection periods with other companies and earlier years. PROBLEM 7-7 EFFECTS OF CHANGES IN RECEIVABLE B ALANCES ON STATEMENT OF CASH FLOWS 1. notes Flow parametric quantity: STEGNER INC.

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2008 puke light on Income130,000 Operating Activities: Accounts Receivable Increase140,000 Notes Receivable Decrease5,000(135,000) notes in courses from operating activities(5,000) 12-31-07- immediate payment110,000 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 minus impact on property, precisely was still profitable because you need information I have a copy of the companys cash flow statement for 2008 i! s 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 validatory 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 you want to contain a full essay, raise it on our website: OrderCustomPaper.com

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