Doug Jokerst is reporting on the company's finances for the past month. Key points include: - Current assets are misleading due to a $40,000 loan liability. - Supplies inventory is in good shape and a new vehicle was purchased. - The company has $20,000 in common stock and net income of $4,833.13 from various events. - Financial ratios like the current ratio, working capital, debt to assets, return on assets, and return on equity are reported. - The profit and loss statement shows $11,400 in event revenue and $6,566.87 in expenses for a net income of $4,833.13. - The budget

1. ASSIGNMENT 4 REPORTING
TO MANAGEMENT
DOUG JOKERST

2. BALANCE SHEET
• CURRENT ASSETS ARE DECEIVING BECAUSE OF THE $40,000 LOAN
LIABILITY
• SUPPLIES INVENTORY IS IN GREAT SHAPE
• VEHICLE WAS PURCHASED WHICH WILL GIVE US 5-7 YEARS OF RELIABLE
SERVICE
• WE HAVE $20,000 IN COMMON STOCK
• PLUS A NET INCOME OF $4,833.13 FROM VARIOUS EVENTS
• CURRENT RATIO- .044 CURRENT ASSETS DIVIDED BY CURRENT LIABILITY
• WORKING CAPITAL- $39,819.99 CURRENT ASSETS DIVIDED BY CURRENT
LIABILITY
• DEBT TO ASSETS- .62 SHORT AND LONG TERM DEBT DIVIDED BY
ASSETS
• RETURN ON ASSETS- .17 NET INCOME DIVIDED BY TOTAL ASSETS
• RETURN ON EQUITY- .24 NET INCOME DIVIDED BY AVERAGE
SHAREHOLDER EQUITY

3. PROFIT AND
LOSS
STATEMENT
• INCOME OF $11,400
FROM EVENT REVENUE
• EXPENSES TOTALED
$6,566.87 WHICH I WILL
EXPLAIN IN BUDGETING
• FOR A TOTAL NET
INCOME OF $4,833.13

4. BUDGET
VERSES
ACTUAL
STATEMENT
• TOTAL BUDGET OF
$15,000 WHICH WE WERE
UNDER, COULD HAVE
BEEN A BETTER MONTH
BUT CANCELATIONS HELD
US BACK.
• CAME IN AT ALMOST
$2,000 UNDER BUDGET
FOR OUR EXPENSES.

5. STATEMENT
OF CASH
FLOW

6. INTERNAL CONTROLS
• TAKING INVENTORY- INVENTORY WILL BE TAKEN TWICE A MONTH TO COUNT PRODUCT ON HAND, AGAINST WHAT
IS LISTED IN THE BOOKS. THIS WILL HELP KEEP OUR BOOKS IN ORDER. I WILL DELEGATE AN EMPLOYEE TO DO THE
INVENTORY WITH ME FOR CROSS CHECKING.
• INTERNAL AUDITS- IT IS AN INDEPENDENT, SYSTEMATIC, AND DISCIPLINED APPROACH TO EVALUATE AND
IMPROVE THE EFFECTIVENESS OF RISK MANAGEMENT. IT HELPS THE COMPANY PREVENT FRAUD AND KEEP
EVERYONE HONEST. I WILL BE IN CHARGE OF ALL INTERNAL AUDITS.
• ENFORCEMENT OF JOB DESCRIPTIONS AND EXPECTATIONS- MAKING SURE THAT EVERYONE IS DOING NOT ONLY
THE JOB THAT THEY WERE HIRED FOR, BUT ALSO THEIR DAILY DELEGATED JOBS. I WOULD EMPLOY MANAGERS TO
ENFORCE THESE.
• LOCKING THE BUILDING BEFORE LEAVING- MAKING SURE WHOEVER CLOSES, LOCKS THE DOOR AND SOUNDS THE
ALARM. I WILL HAVE TRAINING ON HOW I WANT THE BUILDING CLOSED.
• BACKING UP COMPUTER DATA- FOR EVERY BIG PROGRAM THAT CONTAINS IMPORTANT DATA, I WILL HAVE A
BACKUP COMPUTER OR DRIVE WITH THE SAME DATA. I WILL PERSONALLY MAKE SURE THIS IS DONE FOR
QUICKBOOKS.

7. TERMS-
WHAT
I’VE
LEARNED
Every credit needs a debit and vice
versa
Assets and expenses- increase for
Debit- Decrease for Credit
Liabilities, equity, and income-
increase for credit- decrease for debit