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Chapter 2, Problem 2.1DC

1.

To determine

Introduction: Financial Statements depicts the financial position of a firm at a particular point of time or specified date. It helps to analyze the efficiency and performance of the company.

To calculate: Working capital for both companies for recent 2 years and change in their working capital over the year.

2.

To determine

Introduction: Financial Statements depicts the financial position of a firm at a particular point of time or specified date. It helps to analyze the efficiency and performance of the company.

To calculate: Current ratio for both companies for recent 2 years and change in their current ratio over the year.

3.

To determine

Introduction: Financial Statements depicts the financial position of a firm at a particular point of time or specified date. It helps to analyze the efficiency and performance of the company.

To discuss: The difference in two companies as current assets are at the end of the recent years and recognize the largest current asset each company reports at the end of the recent year.

4.

To determine

Introduction: Financial Statements depicts the financial position of a firm at a particular point of time or specified date. It helps to analyze the efficiency and performance of the company.

To comment: On the liquidity of each company.

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Internal controls are the rules and procedures that a company develops and implements. These controls help to maintain the accountability and integrity of the accounting information as well as help to prevent fraud. There are many objectives of a well-designed internal control structure in an organization. These include having a controlled environment, assessing risks, and monitoring. An example of a control that I personally use would be in our register system. Every night, the evening cook/helper counts down the cash register drawer and lets me know how much cash was in the drawer over the amount that we leave in it every night of $125. The next morning, I compare the information from the cash register balance sheet to the computer system to ensure all numbers match up. These numbers are then recorded daily into a monthly spreadsheet that we ensure balances at the end of the month. Respond to ally's post

Chapter 2 Solutions

Bundle: Financial Accounting: The Impact on Decision Makers, Loose-Leaf Version, 10th Edition + LMS Integrated for CengageNOWv2â„¢, 1 term Printed Access Card

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