...Proposal of Controls for Inflows Every company needs an adequate internal control system to minimize the risk of errors in the company’s accounting figures, attempts of fraud, and to ensure that the company abides to their production and managerial policies and procedures. Promoting employee efficiency remains important and helps keep investors apprised of the operations within the company and ensures they understand the company’s financial standing with regard to the integrity of its internal control system. Following is a proposal depicting a design of the internal controls for the inflows of a company that include cash, sales, accounts receivable, inventory, and production. Cash Key areas for the design of cash controls include: • Cash Security • Acknowledgement of Cash Receipts • Separation of duties • Review and Reconciliation Cash or cash equivalents are the most liquid asset a company owns. Cash is easy to transfer and not uniquely identifiable. Proper internal controls are crucial for inflows of cash, as cash is harder to trace. Cash Security proves the most important. Cash should remain in a secure location at all times whether in a safe, vault, or locked drawer or file cabinet. If combinations are used to secure cash, they should be changed frequently. Performing the proper background checks on perspective cash handlers remains a simple and effective method to control cash. Access to cash should remain limited and an access log should be kept for tracking...
Words: 1897 - Pages: 8
...Proposal for Controls Joseph Cruz, Karina Landeros, Martha Moreno, & Bryan H. Wintermantel ACC / 544 May 11, 2015 Todd LaPore Proposal for Controls Businesses suffer from all types of losses that are associated with risks, some intentional and others are unintentional. Businesses have the opportunity to minimize the amount of risk exposure through the implementation of effective internal controls. “Internal Controls establish a process for how your business handles receiving and reporting money and administrative and management tasks” (Chron, 2015). In this paper, Learning Team B will discuss the development of a proposal for appropriate controls to cover cash, sales, accounts receivable, inventory and production. Appropriate controls for cash Cash is the easiest asset to steal, misappropriate and overstate. Because this is one of the most important liquidity assets of the company it is important that internal controls are in place. There are two areas in cash that need to have appropriate internal controls, receipts and disbursement of cash. The internal controls for cash are management ethics and integrity, separation of duties, two-person rule, limited account signers and account review (Dave, Copyright 2012 - 2015). Managers are the ones that lead all employees in accomplishing the company goals therefore management ethics and integrity is very important. Corrupted managers are normally higher than inexperienced people or people who can get easily manipulated...
Words: 1720 - Pages: 7
...Point of View The approach to the case will be taken from the management’s point of view, at the level of the board of directors. Case Context Problem Definition What recommendations are to be made regarding the (1) approval of the 2001 financial budget, (2) declaration of the quarterly dividend and (3) adoption of a compensation scheme for Oleg Pinchuk, the company’s sales and marketing manager? Framework for Analysis First, initial assessment of the current situation of Deutsche Brauerei is to be made. The company’s current financial standing in the market, the reasons for its recent growth and its financial forecasts are analyzed. Then the three issues are to be analyzed for their implications, possible benefits and consequences for the business and. After the analysis, the group will make recommendations regarding the implementation of the three proposals. Alternatives to these proposals will also be suggested. Analysis I. Introductory Paragraph Deutsche Brauerei has been a family owned and operated corporation for 12 generations, which has created a high level of focus and control. Each generation has kept the management and operations processes relatively simple, centered on brewing practices and quality. Deutsche Brauerei’s rapid growth in recent years can be attributed to several factors. First and foremost, the company’s success is centered on the product itself, which has won numerous quality awards and is quite popular in Germany. Another contributing...
Words: 2052 - Pages: 9
...Business Proposal Retia Peyer University of Phoenix Introduction to computer application and systems BIS/220-LRBS George Griepp May 05, 2014 Table of Contents Introduction………………………………..……………………………………………3 Information Systems……………………………………………………………………3 Proposal….……………………………………………………………………………...4 Table 1….……………………………………………………………………………….5 References…………………………………………………………………………..…..6 Business Proposal Information systems vary according to their specific purpose. Generally, there are five types of information systems. Each system serves a specific task several systems overlap in their capacities. The different types of systems will be briefly explained along with how they will benefit the business we are about to open. The five types of information systems are as follows: 1) Office Information System also referred to as an OIS this system uses hardware (computers), software (programs) and networks (a server of to link all the computers to a common modem) to tie together many aspects of the office, such as using email, sending faxes, using electronic data interchange (EDI) to exchange data with other businesses or departments within the company (http://bisom.uncc.edu/courses /info 2130/Topics/istypes.htm). 2) Transaction Processing Systems also referred to as TPS this system uses data from day to day transactions and are usually used by clerical staff. Examples of this type of system could be useful for accounts payable, accounts receivable, and payroll...
Words: 636 - Pages: 3
...DE DISEÑO Find out more at www.kawsarbd1.weebly.com 372 Last saved and edited by Md.Kawsar Siddiqui Principles of Managerial Finance Solution Lawrence J. Gitman CHAPTER 14 Working Capital and Current Assets Management INSTRUCTOR’S RESOURCES Overview This chapter introduces the fundamentals and describes the interrelationship of net working capital, profitability, and risk in managing the firm's current asset accounts. The chapter then focuses on the management of three major current asset accounts⎯cash, accounts receivable and inventory. A brief discussion of general inventory management policies, international inventory management, and several specific inventory management techniques: ABC, economic order quantity (EOQ), reorder point, materials requirement planning (MRP), and just-in-time (JIT). The key aspects of accounts receivable management are discussed: credit policy, credit terms, and collection policy. The chapter also discusses the additional risk factors involved in managing international accounts receivable. Examples demonstrate the effect of changes in credit policy. Also discussed is the impact of changes in cash discounts PMF DISK This chapter's topics are not covered on the PMF Tutor or the PMF Problem-Solver. PMF Templates The following spreadsheet templates are provided: Problem 14-1 14-6 Topic Cash conversion cycle EOQ, reorder point, and safety stock 373 Part 5 Short-Term Financial Decisions Study Guide ...
Words: 4871 - Pages: 20
..., COMPANY PROFILE Company profile-Novus pharmaceuticals ltd is a new strategies business unit (SBU) of Abdul Monem group. The group has a long reputation as the best road construction company of the country. More over the group has two block buster brands Coca-Cola, igloo ice-cream. Bangladesh pharmacy markets have known to be one of the best value addition sectors among all industries. With better urbanization and economic upliftment people will have more access to modern medicines. Novus will capitalize this opportunity by offering highest quality medicines at an affordable cost to serve people locally and globally. Combining the group image and applying appropriate marketing strategies Novus will established itself as a leading player Bangladesh pharmacy market. Company Index Score Current Index Score Historical Index Score * Novus Pharmaceuticals Ltd. currently scores 50% in the index. * Novus Pharmaceuticals Ltd. is currently ranked equal 10 out of 4206. This is in the top 0.24% of Parma companies ranked in the index. * Novus Pharmaceuticals Ltd. is currently ranked equal 19 out of a total of 35419 included in the Info Grok Company Index. This is the top 0.05% of all companies. * User perception of the company stands at 50%. This differs 0% over the score attributed to the company by other scoring factors. Mission & Vision Mission To become the most valued partner of customer care by researching...
Words: 2998 - Pages: 12
...Proposed Accounting Standards Update (Revised) Issued: May 16, 2013 Comments Due: September 13, 2013 Leases (Topic 842) a revision of the 2010 proposed FASB Accounting Standards Update, Leases (Topic 840) This Exposure Draft of a proposed Accounting Standards Update of Topic 842 is issued by the Board for public comment. Comments can be provided using the electronic feedback form available on the FASB website. Written comments should be addressed to: Technical Director File Reference No. 2013-270 The FASB Accounting Standards Codification is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. An Accounting Standards Update is not authoritative; rather, it is a document that communicates how the Accounting Standards Codification is being amended. It also provides other information to help a user of GAAP understand how and why GAAP is changing and when the changes will be effective. Notice to Recipients of This Exposure Draft of a Proposed Accounting Standards Update The Board invites comments on all matters in this Exposure Draft and is requesting comments by September 13, 2013. Interested parties may submit comments in one of three ways: Using the electronic feedback form available on the FASB website at Exposure Documents Open for Comment Emailing a written letter to director@fasb.org, File Reference No. 2013270 Sending written comments to ―Technical Director, File Reference...
Words: 126823 - Pages: 508
...San Jose ( ecampus). Basically this action forces the employees at Riordan Manufacturing to physically create reports, re- enter data and or switch data to compatible formats for the corporate headquarters to grasp. At this current time the basic components of the Riordan Manufacturing systems follows: □ General Ledger □ Accounts Payable □ Accounts Receivable □ Order Entry □ Procurement □ Sales and Purchasing History □ Invoicing and Shipping □ Payroll □ Financial Reporting □ EDI □ Bar Code Reading □ EDSS (Executive Decision Support System) Each of the Riordan Manufacturing locations makes use of similar subsystems as procurement, order entry invoices and shipping. The invoice subsystem will need to line up with the account receivable components. These systems supply information into the sales and purchasing history, accounts receivable and accounts payable. All three of these systems, the procurement, accounts payable and accounts receivable are then provided to the general ledger. The proposed system is recommended by Smith Systems Consulting. The Smith Systems Consulting firm’s proposal would incorporate all four locations with a single software solution that will allow easy input, recording, and output of financial data. Smith Systems recommends using an ERP system to address...
Words: 348 - Pages: 2
...Proposal to Board of Directors A Little Cup of Joe Introduction to the Proposal’s Purpose and Content A Little Cup of Joe Corporation is a medium-sized manufacturing company with 250 employees. It directly markets one product: a unique coffee cup with a patented ball bearing sliding mechanism. Nathan Jr. and a group of 10 other executives run the company. A Little Cup of Joe Corporation has received a large sum of money from a venture capitalist. The venture capitalist and Nathan Jr. are predicting 100 percent growth in five years. To achieve that growth, productivity will need to increase at a similar rate. Therefore, this proposal provides a suggested business model update. Further, the functional areas updates are indicated to assist the business model to predict, plan, and implement future growth and profits. In this proposal, the problem of the outdated business model and functional areas is addressed with new ideas and new employees to implement them. The 100 percent growth projection in five years can become a reality with the managers’ ideas about these questions: Executive Summaries The Accounting and Finance Area is one of the main parts of A Little Cup of Joe. Having A Little Cup of Joe accounting in top shape all year round will help the business function smoothly and provide grounds for sound and promising business decisions. By accomplishing this A Little Cup of Joe will hiring experience and ethical accounting...
Words: 1207 - Pages: 5
...Introduction Recommendations Analysis 1. Analysis of Guna’s Current Situation 2. Evaluation of the transportation manager’s proposal 3. Accept the transportation manager’s proposal and halt dividend payouts until bank loan is repaid 4. Results of our recommendation 5. Evaluation of the operations manager’s proposal 6. Cautions to be taken in inventory management Implementation Conclusion Exhibits 3 4 5 5 5 6 6 2 6 7 7 8 8 9 Executive Summary 1. Guna Fibres, Ltd.’s Current Financial Situation Guna Fibres, Ltd. (Guna) is heavily dependent on its bank loan to fund its short-term operations. The terms of All-India Bank & Trust Company’s (All-India) bank loan specify that Guna must reduce its seasonal line of credit to a zero balance for at least 30 days each year. Financial statement forecasts currently indicate that Guna will not be able to clean up its loan by the end of 2012. If Guna does nothing to rectify its financial situation immediately, the lending officer at All-India will refuse to extend any more seasonal credit to Guna. A refusal to extend seasonal credit to Guna will severely affect the company’s operations and may, in the extreme case, force a bankruptcy as the company runs out of cash. Guna is encountering difficulties in its short-term bank loan repayment largely due to lower profit margins in 2011 despite a rapid rise in sales of 18%. The lower profit margins can be attributed to an increase in both operating and interest expenses. 2. Our Recommendation...
Words: 7730 - Pages: 31
...The company financial performance and recommendation for improvement Analysis The financial performance of the company over the last past year is presented in Exhibit 1. Over the five past five year, the average growth rate of the company was 11% whereas the industry growth rate where only 3%. The Gross profit margin is declining since 2008. Consolidated gross profit for fiscal 2010 was $2.28 billion, up $257.2 million, or 12.7%, over the prior year primarily due to the increase in sales volume. Gross profit margin of 11.9% declined 56 basis points over the prior year with all regions in each operating group experiencing declines in margins. SG&A expenses were 8.5% of sales and 71.0% of gross profit in fiscal 2010 as compared with 9.4% of sales and 75.7% of gross profit in fiscal 2009. Operating income for fiscal 2010 was $635.6 million, or 3.3% of consolidated sales, as compared with an operating loss of $1.02 billion for fiscal 2009. The performance of the company compared to the industry is presented below: Financial Stats | Competitors | AVNET | Revenue Growth | | | 3% | 11% | EBITDA Margin | | | 13% | 4% | EBIT Margin | | | 11% | 3% | Cash Flow Margin | | | 8% | 2% | Taxes | | | 31% | 23% | Debt / Equity | | | 14% | 18% | Return On Equity | | | 9% | 10% | Source http://www.wikiwealth.com/research:avt Recommendation We would recommend the company to remain competitive in its pricing of goods and services. The Company could...
Words: 3729 - Pages: 15
...financial performance has not kept pace with its growth. The current system, which is partly manual and partly automated, doesn’t track accounts receivables sufficiently, and the company is finding it difficult to determine the reasons why the receivables are so high. The company runs frequent specials to attract customers but has no idea whether these efforts are profitable or if the benefit—if there is one—comes from associated sales. Especially for You Jewelers wants to increase repeat sales to its existing customers; thus, it needs to develop a customer database. It also wants to install a new direct sales and accounting system to help solve the outlined problems. The new direct sales and accounting system for Especially for You Jewelers will be an important element in the growth and success of the jewelry company. The direct sales portion must track every sale, be able to link to the inventory system for cost data, and provide a daily profit and loss report. The customer database must be able to produce purchase histories to assist management in preparing special mailings and special sales to existing customers. Detailed credit balances and aged accounts for each customer would help to solve the problem with the high balance of accounts receivables. Special notice letters and credit history reports would help management reduce accounts receivable. Write a six to eight (6-8) page paper in which you: Suggest...
Words: 621 - Pages: 3
...management methods, the working capital continued to rise. This time, however, it was the accounts receivable that needed attention. Angela received a memo form the board asking her to review and rectify the credit management problem as soon as possible. One of the sentences in the memo read “…we simply cannot continue to carry our customers as long as we have been.” Angela had therefore called on her assistant, Simon Martinez, and briefed of the situation. Progressive Farm Equipment Inc. had been in business since 1945, producing small and medium sized tractors, tillers, and other firm equipment. Its customer base included various local and regional hardware stores, farm equipment stores, and repair shops. Most of the clients were strapped for cash and were accustomed to fairly flexible credit terms. The firm had been hard pressed to offer terms of net 60 to its clients, primarily to counter competition from national suppliers and to maintain good customer relationships. Sales had steadily increased over the years but over the past year, higher interest rates and a weakening economy had caused a slump in the agricultural sector leading to a drop in sales of farm equipment. Moreover, the number of farmers filing for bankruptcy had been increasing at an alarming rate. As Angela and Simon reviewed the accounting statements (see Tables 1 and 2) and the aging schedule of receivables, they realized that despite the fairly liberal credit...
Words: 1134 - Pages: 5
...Analysis, which includes our proposals to ultimately increase CanGo’s Cash Flow and Revenues, decrease Expenses and eventually increase the company’s Return on Equity by 8.17% and Net Income by $6,027,657. Balanced sheet and Income Statement reorganization: Simply the Best Consulting recommend reorganizing the current balance sheet for better read and faster analysis by adding rows for Current Assets, Fixed Assets, Current Liabilities, and Fixed Liabilities. We also suggest keeping the assets to the left side of the sheet and moving the Liabilities and Capital to the right. Implementing the above changes will make the company’s balanced sheet easier to read and analyze. With regards to the income statement, we recommend CanGo to make an additional line statement to reflect the total divisional revenues for the various departments and differentiate between the amounts of returns for each department. This will allow the company to analyze the departments better in terms of their sales and returns. The followings are the reorganized balanced sheet and income statement. You can also refer to the Financial Analysis Documents included at the end of our report. | | Balance Sheet | | | ASSETS | December 31, 2009 | | LIABILITIES | December 31, 2009 | December 31, 2008 | Cash | $20,900,000 | | Accounts Payable | $22,000,000 | | Marketable Securities | $117,000,000 | | Accrued Advertising | $11,800,000 | | Accounts Receivable |...
Words: 1959 - Pages: 8
...BUDGET PROPOSAL Management Accounting I CYNTHIA WIEM [00000011168] JULVIANI [00000011326] KEVIN [00000011144] MARIANI [00000011181] MICHAEL [00000011316] YULI H. SIREGAR [00000011391] UNIVERSITAS PELITA HARAPAN Class: A3 Lecturer: Ms. Yenny Martok Submission Deadline: July 23rd, 2015 Accounting Major 2015 ABSTRACT XYZ Ltd is a newly established company which specializes in lip care, thus our newest product is a lip balm called Naturél Tinted lip balm. It is, like other lip balms, used as a preparation to be applied on lips to soothe sore or cracked lips, but not just that. It also has the ability to revive the dead skin on lips back into its natural color. The main difference of our product is that our lip balms are 100% natural. XYZ Ltd aims to make this product knownworldwide and be the leading company in producing a lip balm using only natural ingredients. Therefore, the objectives are using various social media to market our product and relentlessly continue researching on the newest and more effective natural ingredients. As we know, one of the objectives of a company is to market its product and to be able to reach the desired profit, we must be able to do budgeting, a process in which we estimate our expense and income in selling a product so that we can prevent the possibility of debt. In this project, budgeting functions as “planning” stage in marketing our lip balm. Planning is the initial and important step in management. The expected benefit...
Words: 3765 - Pages: 16
