After evaluating identified segments, decisions have to be made whether to pursue a particular opportunity or not. Assuming the
1 answer:
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Answer: Please refer to Explanation
Explanation:
When there are no or relatively low control procedures in a company, there is a threat of financial mismanagement and misdemeanors. This is why control procedures are needed, to address this and stop the leakage of company resources.
1. Failing to take available purchase discounts for prompt payment.
d. File invoices by due date.
e. Maintain a cash budget.
Here two things can be done to control the threat. Firstly, by paying invoices during the discount period, the company can be able to take discounts on goods and services provided to it. Also by maintaining a cash budget, a company can put when a payment is due to be able to claim a discount and act accordingly.
2. Recording and posting errors in accounts payable.
Conduct an automated comparison of total change in cash to total changes in accounts payable.
Using a program to check whether the amounts in the cash account corresponds to the payments on the Accounts payable account will tell you if the amounts tally and will therefore reduce errors.
3. Paying for items not received.
Issue checks only for complete voucher packages (receiving report, supplier invoice, and purchase order).
When issuing checks, make sure that all the above mentioned reports are in order. That way you can check if the goods were delivered as well as if they were even ordered properly in the first place.
4. Kickbacks.
Require purchasing agents to disclose financial or personal interests in suppliers.
Train employees in how to properly respond to gifts or incentives offered by suppliers.
By requiring that purchase agents disclose their relationships with suppliers, you can monitor to check and see if there is a possibility of kickbacks occuring.
Also, by training employees on acceptable methods of receiving gifts, they can know when it is no longer a gift but rather a kickback.
5. Theft of inventory.
b. Document all transfers of inventory. c. Restrict physical access to inventory.
By documenting all transfers going in and out of inventory, the true inventory figure can be known from the records and then used to match with the actual inventory to see if they truly tally.
Restricting the amount of people who have access to the inventory to a few trusted people also limits the amount of people who can steal the inventory as well as making it easier to find out who did when it is done because the focus can be on a few people.
Answer:
a. Gross income = sales - COGS
Pretax = gross income - SG$A expense +operating income + non operating income- interest expense - unusual expense
income taxes = Pretax - net income
income statement 2016 2015 2014 2013 2012
sale 59387 55355 55870 52708 53341
COGS 23425 20651 20522 21418 20507
gross earnings 35962 34704 35348 31290 32834
SG&A EXPENSE 21149 19835 19693 18729 18117
operating income 14813 14869 15655 12561 14717
non operating income 533 -51 224 595 463
interest expense 733 337 192 244 90
unusual expense 1677 269 -114 301 217
pretax 27749 29081 31456 25172 29590
income taxes 17433 17661 19752 15552 18585
Net income 10316 11420 11704 9620 11005
b. Average tax rate = total taxes / total taxable income ( for this calculation we need the tax table for identifying the correct tax brackets for each taxable income falling on it.
2016 2015 2014 2013 2012
gross profit margin 0.61% 0.63% 0.63% 0.59% 0.62%
net profit margin 0.17 % 0.21% 0.21% 0.18% 0.21 %
c. is attached
d.income statement 2016 2015 2014 2013 2012
sale 100 100 100 100 100
COGS 39.44% 37.31% 36.73% 40.64% 38.45%
gross earnings 60.56% 62.69% 63.27% 59.36% 61.55%
SG&A EXPENSE 35.61% 35.83% 35.25% 35.53% 33.96%
operating income 24.94% 26.86% 28.02% 23.83% 27.59%
non operating expense 0.90% -0.09% 0.40% 1.13% 0.87%
interest expense 1.23% 0.61% 0.34% 0.46% 0.17%
unusual expense 2.82% 0.49% -0.20% 0.57% 0.41%
pretax 46.73% 52.54% 56.30% 47.76% 55.47%
income taxes 29.35% 31.90% 35.35% 29.51% 34.84%
Net income 17.37% 20.63% 20.95% 18.25% 20.63%
Explanation:
gross profit margin = gross profit/ sales
net profit margin = net profit / sales
no c is an attachment
