This paper will focus on those areas of cash and cash equivalents‚ accounts receivable‚ and inventories. A list of components that make up the cash and cash equivalents section will be identified. The first part of the paper will introduce the Kellogg Company and provide some history of the company. The main focal point is the analysis of the annual disclosure notes as it relates to cash and cash equivalents‚ accounts receivable‚ and the company’s inventories. Kellogg’s stemmed out from the invention
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Risks • Cash transactions may not be recorded accurately • Cash may not exist Steps 1. Confirm selected bank accounts and special arrangements Select bank accounts for confirmation in order to obtain a moderate to low level of assurance that the aforementioned audit objectives are achieved. Bank confirmations should be sent to all banking relationships to identify accounts not included in the general ledger. Confirmation requests should be sent under our control and‚ second requests
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University Peregrine Systems‚ Inc. was an enterprise software company that was founded in 1981 and sold enterprise asset management‚ change management‚ and ITIL-based IT service management software. Following an accounting scandal and bankruptcy in 2003‚ Peregrine was acquired by Hewlett-Packard in 2005.HP now markets the Peregrine products as part of its IT Service Management solutions‚ within the HP Software Division portfolio. Wall Street’s demand for high growth motivated Peregrine Systems’
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• Understand the impact of the operating cycle on the size of investment in accounts receivable and inventories • Know the differences between the three motives • Be able to differentiate between float‚ collection float‚ and disbursement float • Know how to appraise a firm’s credit worthiness • Be able to appraise the effectiveness of a firm’s inventory management policies Chapter Summary A firm can invest in both working capital and fixed
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by limiting a firm’s ability to distort them. The potential threat of lawsuits and penalties generally improves the accuracy of disclose. Significant legal liability enforced by the SEC tends to also discourage management and auditors from supporting accounting proposals where management and auditor judgment‚ as well as increased complexity come into play. Ultimately‚ without the SEC or FASB‚ managers would not have to disclose any information and the quality of accounting would significantly decrease
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1. Background In a developing country like Bangladesh‚ working capital management has not been revisited very extensively. The working capital is considered as the life blood of a firm .And cash conversion cycle is the primary measure of working capital efficiency. Cash conversion cycle basically shows how long it takes a firm to convert resource inputs into cash flows. This consists of three parts‚ receivables collection period‚ payables deferral period and inventory turnover period. 2. Purpose
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related to the follow areas: * Segregation of Duties * Lack of Internal Control - Lack of control on main production for the company. - Lack of control in accounting records procedure - Lack of control in handling and recording accounts receivable *
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HW 8 – 1 ACCOUNTS RECEIVABLE JOURNAL ENTRIES Prepare journal entries to record the following transactions: (1) On December 15‚ 2008‚ the company recorded $150‚000 sales on credit. (2) On December 31‚ 2008‚ the company estimated bad debt expenses of $15‚000. (3) On January 12‚ 2009‚ collect $100‚000 worth of accounts receivable. (4) After many collection attempts‚ the Company determined on June 15‚ 2009 that it would not collect $10‚000 in accounts receivables from Pendant Publishing
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Running head: HORNIMAN HORTICULTURE Abstract This case captures the cash-flow and working-capital management problems typical of small‚ growing businesses. At the end of 2005‚ Bob and Maggie Brown have completed their third year of operating Horniman Horticulture‚ a woody – shrub “Landscape Ready” grower in central Virginia. While experiencing booming demand and improving margins‚ the couple is puzzled by their plummeting cash balance. The case highlights the difference between cash flow and accounting
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To: Dr. Brooks From: Team 3 Date: September 24‚ 2014 Objective: ACL Accounts Receivable Relevant Facts: The purpose of this case was to develop an audit program by using ACL audit software‚ and to identify the significance of any findings or audit discrepancies. First‚ we footed the file to the general ledger. Next‚ we checked for duplicate invoices to ensure that we did not account for the account receivable more than once. We then proceeded to create an aging schedule to find unpaid invoices over
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