Chapter 5 This violates the segregation of duties between the handling

subject Type Homework Help
subject Pages 8
subject Words 1006
subject Authors Carl S. Warren

Unlock document.

This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
page-pf1
157
PROBLEMS
P5–1
Weaknesses:
page-pf2
158
P5–2
1. DEAVER CONSULTING
Bank Reconciliation
October 31, 20Y6
Cash balance according to bank statement ................. $31,095
Add deposit of October 31, not recorded by bank ....... 4,120
2.
Increase in Cash
Balance Sheet
Statement of Assets =Liabilities + Stockholders’ Equity Income
Cash Flows Notes Retained Statement
Cash + Receivable = + Earnings
Decrease in Cash
Balance Sheet
Statement of Assets = Liabilities + Stockholders’ Equity Income
Cash Flows Accounts Retained Statement
Cash = Payable Earnings
page-pf3
159
P5–3
1. ALL AMERICAN SPORTS CO.
Bank Reconciliation
April 30, 20Y5
Cash balance per bank statement ............................... $40,360
Add deposit of April 30, not recorded by bank .......... 9,275
Deduct: Check returned because of insufficient
page-pf4
160
P5–3, Concluded
2.
Increase in Cash
Balance Sheet
Statement of Assets =Liabilities +Stockholders’ Equity Income
Cash Flows Notes Accounts Retained Statement
Cash + Receivable =Payable + Earnings
Decrease in Cash
Balance Sheet
Statement of Assets =Liabilities + Stockholders’ Equity Income
Cash Flows Accounts Accounts Retained Statement
Cash + Receivable =Payable Earnings
page-pf5
161
P5–4
1. RANCHO FOODS
Bank Reconciliation
May 31, 20Y8
Cash balance according to bank statement .................. $11,697.04
Add deposit of May 31, not recorded by bank .............. 580.34
Add: Proceeds of note collected by bank:
Principal .............................................................. $ 4,000.00
Deduct: Check returned because of insufficient funds $ 450.00
page-pf6
162
P5–4, Concluded
2.
Increase in Cash
Balance Sheet
Statement of Assets =Liabilities +Stockholders’ Equity Income
Cash Flows Notes Accounts Retained Statement
Cash + Receivable =Payable + Earnings
May 31 4,817 (4,000) 27 790 May 31
Decrease in Cash
Balance Sheet
Statement of Assets =Liabilities +Stockholders’ Equity Income
Cash Flows Accounts Retained Statement
Cash + Receivable = Earnings
page-pf7
163
METRIC-BASED ANALYSIS
MBA 5–1
page-pf8
164
MBA 5–2
1. Year 2 Year 1
2. Ratio of cash to monthly cash expenses:
3. Ratio of cash to monthly cash expenses:
4. At the end of Year 1, with negative monthly cash expenses of $(5,844) per
5. In Year 3, Pacira was able to generate positive cash flows from operations

Trusted by Thousands of
Students

Here are what students say about us.

Copyright ©2022 All rights reserved. | CoursePaper is not sponsored or endorsed by any college or university.