Response to the following problem:
1. Deacon Co. reported annual net sales for 2010 and 2011 of $565,000 and $647,000, respectively. Its yearend balances of accounts receivable follow: December 31, 2010, $51,000; and December 31, 2011, $83,000.
(a) Calculate its days' sales uncollected at the end of each year.
(b) Evaluate and comment on any changes in the amount of liquid assets tied up in receivables.
2. Why are some cash payments made from a petty cash fund and not by check?
3. Identify at least two results of reimbursing a petty cash fund.