Sanderson LLC Mr. Paul was working as senior accountant of Sanderson LLC for the last five years. Two months before Mt. Paul has given resignation and agreed to work for three months until the management finds a suitable replacement for his position. The accounts department consists of 5 employees including Mr. Paul at present and the assistant accountant has been given signing authority of supplier cheques and some of the functions of senior accountant also assigned to him. It has been noted that large amount of outstanding for the suppliers were pending and few of the suppliers have stop supplying goods to Sanderson LLC from last month. The credit period was extended to customers to improve the sales and most of the customers have not settled the dues on time. Few of the customers are disappeared and unable to find them in the market. Hence Sanderson LLC is facing high irrecoverable value of receivables. The assistant accountant has suggested to the management that to meet the temporary financial difficulties, Sanderson LLC should approach the bank for additional overdraft facilities to overcome the cash-flow difficulties Managing director proposed to appoint an internal auditor to find out the reasons for present financial difficulties and rectify weakness in record maintenance by the staff in finance department. He further commented that on one of social gathering he was also told by a friend who is also a senior partner in a well-known audit company that in the above situation a propre and timely bank reconciliation performance as a form of Detective Control can help in resolving the cash flow problem of the company You have been appointed as senior accountant to Sanderson LLC to function from the next month to take over many tasks handed over to the assistant accountant. You are required to prepare a report to addressing the following two concerns raised by the managing director. a) Discuss various financial statements prepared by a merchandising business. b) Critically analyze the purpose of various financial statements listed above. c) Record 3 different accounting transactions of your choice and establish Assets Liability + Equity