1. Draw an REA model of the revenue and expenditure cycles.

a. Set the cardinalities according the set of company policies below

Companies policies:

• When ordering inventory, one employee creates a purchase request, which is then approved by an authorized employee.
• When inventory is received, one employee inspects the goods and checks the quantity. The same employee creates a receiving report.
• The company doesnotuse batch processing to pay its suppliers. All outstanding balances are paid at the end of each day. The company does not make partial payments.
• When issuing checks, each transaction over $500 must be approved by a supervising cashier.
• The company allows its customers to pay in installments or for multiple customers to pay for one order. Customers may also pay for multiple orders at once.
• Each payment must be received by one employee and counted by another.