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ACC1002X Financial Accounting Group 3 Project Question for Week 8 CP-W07 Accounts receivables and cash Ang Hui Shin A0102395L Chimene Lim A0092043N Estee Amanda Tan A0083721J Tay Kai Zhi Angie A0100488J CP-W07 1) Account receivables turnover ratio for 2012 Net sales for 28 January 2012 4,158,058 thousands Receivables at 29 January 201174,777 thousands Receivables at 28 January 2012 89,350 thousands Average accounts receivable (89,35074,777)/2 82063.5 thousands Account receivables turnover ratio Net Sales / Average Accounts Receivable 4,158,058/ (82063.5) 50.6687869759394 Account receivables turnover ratio for 2013 Net sales for 29 January 2011 4,510,805 thousands Receivables at 28 January 2012 89,350 thousands Receivables at 2 February 2013 99,622 thousands Average accounts receivable (89,35099,622)/2 94486 thousands Account receivables turnover ratio Net Sales / Average Accounts Receivable 4,510,805 / 94486 47.74045890396461 The account receivable turnover ratio for Abercrombie Fitch is high reflects a short lapse f time between sales and the collection of cash. This could be due to its direct-to-consumer business. The company uses websites to promote their brands and thus complement the in-store experience. This had led to an increase in aggregate total net sales through direct-to-consumer operations, including shipping and handling revenue, of 552.6 million for Fiscal 2011, representing 13.3 of total net sales. 2a) The principle of separating recordkeeping from custody of assets is violated, where a person who controls or has access to an asset must not keep that assets accounting records. Since Employee D is the only cashier and prepares the bank reconciliation statement, it may lead to risk of theft or waste of an asset as it is easy for employee D to commit the fraud as recordkeeping and control of assets is not separated. b) Employee E is the best person to prepare the bank reconciliation statement as employee E is the record-keeper who