a. Prepare the following January report for the Shemer Company:
|
I S
|
Cash
|
|
Inv
|
|
AR
|
|
|
Sales
COGS
|
BB
Collections
Payments
EB
|
1,000
|
BB
Production
Shipments
EB
|
500
|
BB
Sales
Collections
EB
|
750
|
|
NI
|
|
|
|
|
|
|
|
|
The books at the end of January show:
January 31: Cash, $1,250: inventory, $500; receivables, $750.
b. Do you anticipate any future problems for the Shemer Company? What do you need to do in order to verify your conjecture?