Reference no: EM13355619
"The records of Filippis Company indicate a March 31 cash balance of 10,806.05, which includes undeposited receipts for March 30 and 31. The cash balance on the bank statement as of March 31 is 7,004.95. This balance includes a note of 3,000 plus interest of 120.00 collected by the bank but not recorded in the journal. Checks outstanding on March 31 were as follows: no. 670, 1,129.16; no.679,830.00; no.690,525.90; no.2148,127.40; no.2149,520.00; and no.2151,851.50 On March 3, the cashier resigned, effective at the end of the month. Before leaving on March 31 the cashier prepared this bank reconciliation: Cash balance per books, March 31 10,806.05 Add outstanding checks: No.2148 127.40 No.2149 520.00 No.2151 851.50 1,198.90 _________ 12,004.95 Less undeposited receipts 5,000 Cash balance per bank, March 31 7,004.95 Deduct unrecorded note with interest 3,120.00 True cash, March 31 3,884.95 Subsequently, the owner discovered that the cashier had stolen an unknown amount of undeposited receipts, leaving only 5,000 to be deposited. Determine the amount the cashier stole in good form, how did the cashier attempt to conceal the theft?, identify two major weaknesses in internal control, recommend improvements in internal control. "
Revenue and expense data for Malden Company are as follows:
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2006
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2005
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Administrative expenses
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$ 37,000
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$ 20,000
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|
Cost of goods sold
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400,000
|
320,000
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|
Income tax
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40,000
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32,000
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|
Net sales
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900,000
|
700,000
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Selling expenses
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190,000
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110,000
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(a) Prepare a comparative income statement, with vertical analysis, stating each item for both 2006 and 2005 as a percent of sales.
b) Comment upon significant changes disclosed by the comparative income statement.