Accounting Assignment

PROBLEM 6-5 INTERNAL CONTROL 1.Morris does not understand the differences of all in all duties, speckle Mary does all accounts of allurements. 2.2 employees should mail invoices and bills. 2 should hold up the mail open. 2 should require for collectings. All work should be shared and Mary should not do everything. 3.Mary should be told approximately how fraud can happen this entrust cut the 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. fellowship period: Coca-Cola: 360/9.90 = 36.36 DAYS PepsiCo: 360/10.06 = 35.79 DAYS Each community has collection about 35-36 days and that is justified. 3.Both companies let very similar swage rate proportions and average collection periods. Compare turnover ratio and collection periods with other companies and earlier years. PROBLEM 7-7 EFFECTS OF CHANGES I N RECEIVABLE BALANCES ON STATEMENT OF CASH FLOWS 1. notes Flow argument: STEGNER INC.

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2008 swan light on Income130,000 Operating Activities: Accounts Receivable Increase140,000 Notes Receivable Decrease5,000(135,000) money in courses from operating activities(5,000) 12-31-07- hard currency110,000 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 negative impact on specie, 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 coercive 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, order it on our website: OrderCustomPaper.com

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