The document reports on the financial performance and internal controls of Gemstar Productions, Inc. It includes a balance sheet showing current assets of $14,100 and current liabilities of $4,000, giving working capital of $10,100. It also reports a current ratio of 3.5, debt to assets ratio of 33.1%, net income of $89,100, return on assets of 55%, and return on equity of 81.6%. The document recommends strengthening internal controls through employee training, controlling physical assets, monthly reconciliations, cycle counting instead of full inventories, and reviewing organizational performance.

1. ANDRY MORALES MONTES DE OCA
REPORTING TO MANAGEMENT: Gemstar
Productions, Inc.
BUSINESS ACCOUNTING
MAY 27,2020

2. BUSINESS ACCOUNTING-REPORTING TO MANAGEMENT
BALANCE
SHEET

3. BUSINESS ACCOUNTING-REPORTING TO MANAGEMENT
CURRENT ASSETSCURRENT
RATIO =
CURRENT LIABILITIES
=
$14,100.00
$4,000.00
WORKING
CAPITAL $14,100.00 $4,000.00 =
DEBT TO
ASSETS =
$54,000.00
$163,100.00
x
=100
3.5
33.1%
$10,100.00
=
CURRENT ASSETS
CURRENT ASSETS
=
=
x
100

4. BUSINESS ACCOUNTING-REPORTING TO MANAGEMENT
NET INCOME
RETURN ON
ASSETS
=
AVG. TOTAL ASSETS
= =
$89,100.00
$163,100.00
=
NET PROFIT
AVG. SHAREHOLDERS’
EQUITY
= =
$89,100.00
$109,100.00
$0.55
81.6%
RETURN ON
EQUITY
x
x
100
100

5. INCOME
STATEMENT
VS BUDGET
BUSINESS ACCOUNTING-REPORTING TO MANAGEMENT

6. STATEMENT OF CASH FLOW
BUSINESS ACCOUNTING-REPORTING TO MANAGEMENT

7. BUSINESS ACCOUNTING-REPORTING TO MANAGEMENT
1.Employee screening and training: Implement a program for
training every new employee over ethical behavior.
2.Physical control over assets: Buy a safe deposit box where to
keep the cash. Install locks on each office door in particular those
where assets are stored.
3.Monthly reconciliation of departmental transaction: Make
monthly reconciliations on the first five days of each month.
INTERNAL CONTROLS

8. BUSINESS ACCOUNTING-REPORTING TO MANAGEMENT
INTERNAL CONTROLS
4. Physical inventories: Establish a cycle counting method instead
of a physical inventory to reduce expenses.
5. Review organizational performance: Include in the annual
agenda a review of organizational performance. Establish a
schedule to solve issues and strengthen organizational
mechanisms.

9. REFERENCES
Finance & Accounting. (2020, January 31). Types of Internal Controls.
University of Florida. Retrieved from https://www.fa.ufl.edu/directives/
types-of-internal-controls/
Rick Weber. (December 1, 2016). The caustic cost of occupational
fraud. Trailer/Body Builders. Retrieved from https://advance-lexis-
com.oclc.fullsail.edu/api/document?
collection=news&id=urn:contentItem:5M9B-MWD1-JBKS-
P2F0-00000-00&context=1516831
BUSINESS ACCOUNTING-REPORTING TO MANAGEMENT