l tnmobile 3G 01:35 93% (-), + Assignment 2 Question 1 (40 Marks) Tolina Clothes, Inc., is a 25-store chain concentrated in the noetheastern United States that sells ready to wear clothes for young men and women. Each store has a full time managee and an assistant manager both of whom are paid a salary. The cashiers and sales personnel are typically young people working pant time who are paid an hourly wage plus a commission based on sales volume. The accompanying flowchart for this problem depicts the flow of a sales tramaction through the organisation of a typical store. The company uses unsophisticated cash registers with four-part sales invoices to record each transaction. These sales invoices are used regardless of the payment type (cash, check, bank card On the sales floor, the salesperson manually records hisher employee number and the tramsaction (clothes, class, description, and quantity and unit price), total the sales invoice, calculates the sales tax, and prepares the grand total. The salesperson then gives the sales imvaice to the cashier, retaining one copy in the sales book The cashier reviews the invoice and inputs the sale. The cash register mechanically validates the invokce, automatically assigning a consecutive numbee to the transaction. The cashier is also responsible for getting credit approval on charge sales and approving sales paid by cheques. The cashier gives one copy of the invoice to the customer and retains the second a deposit is needed. Returns are handles in exactly the reverse manner, with the cashier issuing a return slip copy as a store copy and the third for a bank card if At the end of each day, the cashier sequentially oeders the sales invoices and takes cash register totals for cash, bank card and check sales and cash and bank card returns. These totals are reconciled by the assistant manager to the cash register tapes, the total of the consecutively numbered sales invoices, and the return slip. The assistant manager prepares a daily reconciliation report for the store manager review. The manager reviews cash, cheques and bank card sales and then prepares the daily bank deposit (bank card sales are included in the deposit). The manager makes the deposit at the bank and files the validated deposit slip. The cash register tapes, sales involces, and return slips are forwarded daily to the central data processing department at coepoeate headquarters for processing. The data processing department returns a weekly sales and commission activity report to the manager for review. Required a) Discuss the major subsystems of the revenue cycle. b) ldenaily six strengths in Tolina Clothes, Inc system for controlling sales tramactions. (18) c) For each strength identified, explain what problem(s) Jem Clothes has avoided by incorpo (10) the strength in the system for controlling sales transactions. Use the following format in preparing your answer 1. Strengths 2. Problem(s) Avoided Page 10 of 11 l tnmobile 3G 01:35 93% (-), + Assignment 2 Question 1 (40 Marks) Tolina Clothes, Inc., is a 25-store chain concentrated in the noetheastern United States that sells ready to wear clothes for young men and women. Each store has a full time managee and an assistant manager both of whom are paid a salary. The cashiers and sales personnel are typically young people working pant time who are paid an hourly wage plus a commission based on sales volume. The accompanying flowchart for this problem depicts the flow of a sales tramaction through the organisation of a typical store. The company uses unsophisticated cash registers with four-part sales invoices to record each transaction. These sales invoices are used regardless of the payment type (cash, check, bank card On the sales floor, the salesperson manually records hisher employee number and the tramsaction (clothes, class, description, and quantity and unit price), total the sales invoice, calculates the sales tax, and prepares the grand total. The salesperson then gives the sales imvaice to the cashier, retaining one copy in the sales book The cashier reviews the invoice and inputs the sale. The cash register mechanically validates the invokce, automatically assigning a consecutive numbee to the transaction. The cashier is also responsible for getting credit approval on charge sales and approving sales paid by cheques. The cashier gives one copy of the invoice to the customer and retains the second a deposit is needed. Returns are handles in exactly the reverse manner, with the cashier issuing a return slip copy as a store copy and the third for a bank card if At the end of each day, the cashier sequentially oeders the sales invoices and takes cash register totals for cash, bank card and check sales and cash and bank card returns. These totals are reconciled by the assistant manager to the cash register tapes, the total of the consecutively numbered sales invoices, and the return slip. The assistant manager prepares a daily reconciliation report for the store manager review. The manager reviews cash, cheques and bank card sales and then prepares the daily bank deposit (bank card sales are included in the deposit). The manager makes the deposit at the bank and files the validated deposit slip. The cash register tapes, sales involces, and return slips are forwarded daily to the central data processing department at coepoeate headquarters for processing. The data processing department returns a weekly sales and commission activity report to the manager for review. Required a) Discuss the major subsystems of the revenue cycle. b) ldenaily six strengths in Tolina Clothes, Inc system for controlling sales tramactions. (18) c) For each strength identified, explain what problem(s) Jem Clothes has avoided by incorpo (10) the strength in the system for controlling sales transactions. Use the following format in preparing your answer 1. Strengths 2. Problem(s) Avoided Page 10 of 11
