Question;Wk 2 DQ;DQ;1 The Statement of Cash Flows;From Chapter 14, Fraud Case 14-1. Complete all parts of the case and respond to;at least two of your classmates? postings by Day 7.;Frank Lou had recently been promoted to construction;manager at a development firm. He was responsible for dealing with contractors;who were bidding on a multi-million dollar excavation job for the new;high-rise. Times were tough, several contractors had gone under recently, and;the ones left standing were viciously competitive. That morning, four bids were;sitting on Frank's desk. The deadline was midnight, and the bids would be;opened the next morning. The first bidder, Bo Freely, was a tough but;personable character that Frank had known for years. Frank had lunch with him;today, and after a few beers, Bo hinted that if Frank ?inadvertently? mentioned;the amount of the lowest bid, he?d receive a ?birthday card? with a gift of;cash. After lunch, Frank carefully unsealed the bids and noticed that another;firm had underbid Bo's company by a small margin. Frank took Bo's bid envelope;wrote the low bid amount in pencil on it, and carried it downstairs where Bo's;son William was waiting. Later that afternoon, a new bid came in from Bo's;company. The next day, Bo's company got the job, and Frank got a birthday card;in his mailbox.;Requirements;1. Was Frank's company hurt in any way by this;fraudulent action?;2. How could this action hurt Frank?;3. How can a business protect against this;kind of fraud?;DQ;2 Financial Statement Analysis;Discuss what high current ratios;indicate and why are businesses with extremely high current ratios (example;25.0) at risk? Explain what a high accounts receivable turnover indicates to a;business? Respond to at least two of your classmates? postings.
Paper#41154 | Written in 18-Jul-2015Price : $22