Only 8-1 and 8-3 please

connect pany is a rapidly growing start-up business. Its recordkeeper, who was hired six months ago, had disappeared over the past left town after the company's manager discovered that a large sum of money three months. An audit disclosed that the recordkeeper had written and signed several checks made pay- able to her fianc and then recorded the checks as salaries expense. The fianc, who cashed the checks but never worked for the company, left town with the recordkeeper. As a result, the company incurred an un- Exercise 8-1 Analyzing internal control C1 insured loss of $184,000. Evaluate Franco's internal control system and indicate which principles of internal control appear to have been ignored. Exercise 8-2 What internal control procedures would you recommend in each of the following situations? 1. A concession company has one employee who sells towels, coolers, and sunglasses at the beach. Each Internal control recommendations C1 day, the employee is given enough towels, coolers, and sunglasses to last through the day and enough cash to make change. The money is kept in a box at the stand. 2. An antique store has one employee who is given cash and sent to garage sales each weekend. The employee pays cash for any merchandise acquired that the antique store resells. Good accounting systems help with the management and control of cash and cash equivalents. 1. Define and contrast the terms liquid asset and cash equivalent. 2. Why would companies invest their idle cash in cash equivalents? 3. Identify five principles of effective cash management. Exercise 8-3 Cash, liquidity, and return C2