Horox, Inc. is a manufacturer of portable compact disc (CD) players. It is located outside of Philadelphia, Pennsylvania, and employs 1,500 workers at a centrally located, 15-acre pro- duction facility. It distributes its products world- wide through three nearby distribution centers. Sales are currently $20 million per year and growing. Horox was formed 10 years ago; its management was relatively inexperienced and its technical knowledge was lacking. Since 1997, Horox has been expanding into new research areas and in the past three years has reported enormous profits in its financial statements. Its major competitors for the small market share it has are electronic giants. Horox has managed to edge its way into retail chains and privately owned stores through the aggressiveness and wit of its sales staff. Horox supplies the major electronic chains and department stores, requiring payment for all orders within 30 days of the order or upon receipt. Within the expenditure cycle, the company needs to purchase raw materials such as plastics and special computer chips and send these materi- als to the conversion cycle. The expenditure cycle also maintains the payroll department. John, a purchasing department clerk, monitors the invenory levels and determines whether purchases are necessary. He then prepares a purchase requisi- tion. If purchases are needed, he prepares six pur- chase order forms. Two purchase orders are sent directly to the vendor. One is placed in an open purchase order file in the purchasing department, and the other is used to update the records of the purchasing department. Accounts payable and the receiving department also are sent a purchase order. Upon receiving the goods with a packing slip, the receiving department creates five receiv- ing reports. A receiving report is sent to the stores and the accounts payable department. Two receiving reports are sent to the purchasing department, where one is filed and one is used to update records. The final report is filed in the receiving department with the purchase order and packing slip. Vendors send the accounts payable department invoices, which are updated to the accounts payable subsidiary ledger and the pur- chases journal and filed. A voucher is created from the purchases journal, and it is sent to the general ledger.

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Required: a. Prepare the REA model of the acquisition/ payment business process of Horox, Inc. b. List the information events in the process and classify each of them as either recording, reporting, or maintaining events. c. List the decision/management events in the process.