Accounting Assignment

PROBLEM 6-5 INTERNAL CONTROL 1.Morris does not understand the differences of each(prenominal) duties, speckle Mary does all accounts of allurements. 2.2 employees should mail invoices and bills. 2 should touch the mail open. 2 should require for collectings. All work should be shared and Mary should not do everything. 3.Mary should be told virtually how fraud can happen this lead cut the headache 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. array period: Coca-Cola: 360/9.90 = 36.36 DAYS PepsiCo: 360/10.06 = 35.79 DAYS Each federation has collection about 35-36 days and that is justified. 3.Both companies let very similar turnover rate rate dimensions 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 argument: STEGNER INC.

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2008 dispose light on Income130,000 Operating Activities: Accounts Receivable Increase140,000 Notes Receivable Decrease5,000(135,000) funds 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 ban impact on cash, precisely was still profitable because you need information I have a copy of the companys c ash flow statement for 2008 is below. The c! ompanys 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, fiat it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper