Recent college graduate Kris Falusi was extremely pleased with his recent career choice as a management trainee with a large movie theatre chain called Showtime Cinemas Incorporated. His first assignment was to investigate the quickly shrinking profit margins of the snack bar at the local Showtime theatre. The manager suspected that the profits from soft drink and popcorn sales ing large colas and jumbo containers of popcorn as always. He urged Kris to were declining rapidly. Yet he observed that just as many people were order- investigate this problem immediately with the goal of restoring profits to their Kris started by interviewing the snack bar employees. Within days, he dis- covered the cause of the shrinking profits. He uncovered a scheme so effective that it allowed three part-time snack bar employees to steal as much as $120 per previous level. evening and still balance their cash register. ASE I Cola Profits Go Flat Impossible? No. Here's how the scheme worked. In order to verify the cash register sales figures for soft drinks and popcorn, the manager of the snack bar routinely matched the number of drink and pop- corn containers used with the amount of cash on hand. For instance, if 100 popcorn containers were used during a shift and each large order of popcorn sells for $6.00, the cash register should contain $600 in cash under the heading "Popcorn." The dishonest employees simply reused discarded containers retrieved from the theatre aisles during intermission. These containers were refilled and resold, allowing employees to bypass the cash register and keep the sales rev- enue for themselves while still balancing cash register totals with the number of new containers used. Kris discovered that some employees stole as much as several hundred dol- lars per month using this method. Questions 1. Prepare a list of cash controls Kris could use to prevent such theft in the future. 2. What action should Kris take against the dishonest employees? Why? 3. Cash control experts believe not only that effective cash controls must be used, but also that employees must see them being used. Explain this state- ment. 4. Suppose you were an employee of the Showtime theatre and had recently developed an important friendship with one of the three dishonest em- ployees. It was through this friendship that you learned of the dishonest scheme. In fact, this friend invited you to participate. What options would be open to you? Which one would you take? Explain the advantages and disadvantages of your chosen option.

E I Cola Profits Go Flat Recent college graduate Kris Falusi was extremely pleased with his recent. career choice as a management trainee with a large movie theatre chain called Showtime Cinemas Incorporated. His first assignment was to investigate the quickly shrinking profit margins of the snack bar at the local Showtime theatte, The manager suspected that the profits from soft drink and popeorn salen were declining rapidly. Yet he observed that just as many people wene order. ing large colas and jumbo containers of popcorn as always. He urged Kris io investigate this problem immediately with the goal of restoring profits to their previous level. Kris started by interviewing the snack bar employees. Within days, he digcovered the cause of the shrinking profits. He uncovered a scheme so effective that it allowed three part-time snack bar employees to steal as much as $120 per evening and still balance their cash register. Impossible? No. Here's how the scheme worked. In order to verify the eash register sales figures for soft drinks and popeon, the manager of the snack bar routinely matched the number of drink and popcorn containers used with the amount of cash on hand. For instance, if 100 popcorn containers were used during a shift and each large order of popoorm sells for $6.00, the cash register should contain $600 in cash under the heading "Popcorn." The dishonest employees simply reused discarded containers retrieved from the theatre aisles during intermission. These containers were refilled and resold, allowing employees to bypass the cash register and keep the sales revenue for themselves while still balancing cash register totals with the number of new containers used. Kris discovered that some employees stole as much as several hundred dollars per month using this method. Questions 1. Prepare a list of cash controls Kris could use to prevent such theft in the future. 2. What action should Kris take against the dishonest employees? Why? 3. Cash control experts believe not only that effective cash controls must be used, but also that employees must see them being used. Explain this statement. 4. Suppose you were an employee of the Showtime theatre and had recently developed an important friendship with one of the three dishonest employees. It was through this friendship that you learned of the dishonest scheme. In fact, this friend invited you to participate. What options would be open to you? Which one would you take? Explain the advantages and disadvantages of your chosen option