Questions -
1. During December the company's cash balance has fallen from $200,000 to $65,000. Does the company appear to be headed toward insolvency in the near future? Explain your reasoning. If the company appears to be headed toward insolvency what does it need to do to avoid insolvency?
2. Would it be ethical for Patty Driver to maintain the accounting records for the organization, or must they be maintained by someone who is independent of the company? Why?