2. The preparation of a bank reconciliation is an important cash control procedure. If a company deposits cash receipts daily and makes all cash disbursements by check, explain why the cash balance per books might not agree with the cash balance shown on the bank statement. Identify specific examples that may cause differences between the cash balance per books and the cash balance per the bank. h a 133 roase be wit ant ni brzu nuto ton sro Narrow it nuo wrong Hon prestavou botusborn botaujha no tard of whitno kontrol prvida, sinald 3. Jim Howard, the president and CEO of Earth Systems, Inc., a waste management firm, was recently hospitalized, suffering from exhaustion and a heart ailment. Immediately prior to his hospitalization, Earth Systems had experienced a sharp decline in its stock price, and trading activity became almost nonexistent. The primary reason for this was concern expressed in the media over a new untested waste management system implemented by the company. Mr. Howard had been unwilling to submit the procedure to testing before implementation, but he reluctantly agreed to limited tests after the system was operatonal. No problems have been identified by the tests to date. The other members of management called a meeting to determine what they should do. Rick Downing, the marketing manager, suggested that the company purchase a large number of shares of treasury stock. In that way, Investors might notice that activity had picked up, and might decide to buy some more shares. This plan would use up most of the company's available cash, so that there will be no money available for a cash didivend. Earth Systems has paid cash dividends every quarter for over the years. REQUIRED: 1. Is Mr. Downing,s suggestion ethical? Explain. 2. Is it ethical to discontinue the cash dividend? Explain. 3. Is purchasing the treasury stock an appropriate move? Explain