Question

Days' cash on hand Financial statement data for years ending December 31 for Newton Company follow: This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Determine the days' cash on hand for 20Y and 20Y9. Assume a 365-day year. Round your answers to one decimal place. Using bank reconciliation to determine cash receipts stolen Alaska Impressions Co. records all cash receipts on the basis of its cash register tapes. Alaska Impressions discovered during October 20Y3 that one of its sales clerks had stolen an undetermined amount of cash receipts by taking the daily deposits to the bank. The following data have been gathered for October: No deposits were in transit on October 31. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below Open spreadsheet a. Determine the amount of cash receipts stolen by the sales clerk. Round your answer to the nearest dollar. $ b. What accounting controls would have prevented or detected this theft?

Answer 1

To determine the days' cash on hand, divide the cash balance by the average daily cash outflows. To calculate the amount of cash receipts stolen, subtract the total deposits made from the total cash receipts recorded. Accounting controls like segregation of duties can prevent or detect theft.

Step-by-step explanation:

To determine the days' cash on hand for the years 20Y and 20Y9, we need to calculate the average daily cash balance. We can do this by dividing the cash balance by the number of days in the year. The formula to calculate days' cash on hand is: Days' Cash on Hand = (Cash Balance / Average Daily Cash Outflows) * 365.

To determine the amount of cash receipts stolen by the sales clerk, we need to calculate the difference between the total cash receipts recorded and the total deposits made. Accounting controls that could have prevented or detected this theft include implementing segregation of duties, conducting regular internal audits, and implementing surveillance systems.