1.Morris does not understand the differences of all duties, speckle Mary does all accounts of allurements.
2.2 employees should mail invoices and bills. 2 should agree the mail open. 2 should require for collections. All work should be shared and Mary should not do everything.
3.Mary should be told almost how fraud can happen this will 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. Collection period:
Coca-Cola: 360/9.90 = 36.36 DAYS
PepsiCo: 360/10.06 = 35.79 DAYS
Each company has collection about 35-36 days and that is justified.
3.Both companies let very similar turnover rate ratios 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 parameter:
STEGNER INC.
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2008
shed light on Income130,000
Operating Activities:
Accounts Receivable Increase140,000
Notes Receivable Decrease5,000(135,000)
cash in courses from operating activities(5,000)
12-31-07-Cash110,000
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 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 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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