Saratoga Theater is in the Federal Mall. A cashier?s booth is located near the entrance to the theater. Two cashiers are employed. One works from 1:00 to 5:00 P.M., the other from 5:00 to 9:00 P.M. Each cashier is bonded. The cashiers receive cash from customers and operate a machine that ejects serially numbered tickets. The rolls of tickets are inserted and locked into the machine by the theater manager at the beginning of each cashier?s shift. After purchasing a ticket, the customer takes the ticket to a doorperson stationed at the entrance of the theater lobby some 60 feet from the cashier?s booth. The doorperson tears the ticket in half, admits the customer, and returns the ticket stub to the customer. The other half of the ticket is dropped into a locked box by the doorperson. At the end of each cashier?s shift, the theater manager removes the ticket rolls from the machine and makes a cash count. The cash count sheet is initialed by the cashier. At the end of the day, the manager deposits the receipts in total in a bank night deposit vault located in the mall. In addition, the manager sends copies of the deposit slip and the initialed cash count sheets to the theater company treasurer for verification and to the company?s accounting department. Receipts from the first shift are stored in a safe located in the manager?s office. Instructions (a) Identify the internal control principles and their application to the cash receipts transactions of Saratoga Theater. (b) If the doorperson and cashier decided to collaborate to misappropriate cash, what actions might they take?

Final Exam Please prepare a response to the following problem set and post in your week 5 individual assignment forum. Textbook>> Financial Accounting: Tools for Business Decision Making P7-1A; page 354 Saratoga Theater is in the Federal Mall. A cashier's booth is located near the entrance to the theater. Two cashiers are employed. One works from 1:00 to 5:00 P.M., the other from 5:00 to 9:00 P.M. Each cashier is bonded. The cashiers receive cash from customers and operate a machine that ejects serially numbered tickets. The rolls of tickets are inserted and locked into the machine by the theater manager at the beginning of each cashier's shift. After purchasing a ticket, the customer takes the ticket to a doorperson stationed at the entrance of the theater lobby some 60 feet from the cashier's booth. The doorperson tears the ticket in half, admits the customer, and returns the ticket stub to the customer. The other half of the ticket is dropped into a locked box by the doorperson. At the end of each cashier's shift, the theater manager removes the ticket rolls from the machine and makes a cash count. The cash count sheet is initialed by the cashier. At the end of the day, the manager deposits the receipts in total in a bank night deposit vault located in the mall. In addition, the manager sends copies of the deposit slip and the initialed cash count sheets to the theater company treasurer for verification and to the company's accounting department. Receipts from the first shift are stored in a safe located in the manager's office. Instructions (a) Identify the internal control principles and their application to the cash receipts transactions of Saratoga Theater. (b) If the doorperson and cashier decided to collaborate to misappropriate cash, what actions might they take? P11-7A; page 573 Stuffitt Company manufactures backpacks. During 2007 Stuffitt issued bonds at 10% interest and used the cash proceeds to purchase treasury stock. The following financial information is available for Stuffitt Company for the years 2007 and 2006. 2007 2006 Sales 9,000,000 9,000,000 Net income 2,340,000 2,700,000 Interest expense 500,000 140,000 Tax expense 670,000 780,000 Dividends paid 890,000 1,026,000 Total assets (year-end) 14,500,000 16,875,000 Average total assets 14,937,500 17,647,000 Total liabilities (year-end) 6,000,000 3,000,000 Average total stockholders' equity 9,400,000 14,100,000 Instructions (a) Use the information above to calculate the following ratios for both years: (i) return on assets ratio, (ii) return on common stockholders' equity ratio, (iii) payout ratio, (iv) debt to total assets ratio, (v) times interest earned ratio. (b) Referring to your findings in part (a), discuss the changes in the company's profitability from 2006 to 2007. (c) Referring to your findings in part (a), discuss the changes in the company's solvency from 2006 to 2007. E (d) Based on your findings in (b), was the decision to issue debt to purchase common stock a wise one