Franco Company is a rapidly growing start-up business. Its recordkeeper, who was hired one year ago, left town after the company's manager discovered that a large sum of money had disappeared over the
past six months. An audit disclosed that the recordkeeper had written and signed several checks made
payable to her fiancé and then recorded the checks as salaries expense. The fiancé, who cashed the checks
but never worked for the company, left town with the recordkeeper. As a result, the company incurred
an uninsured loss of $184,000. Evaluate Franco's cash control system and indicate which guidelines of
cash control appear to have been ignored.

Required information lansing company’s 2017 income statement and selected balance sheet data (for current assets and current liabilities) at december 31, 2016 and 2017, follow. lansing company income statement for year ended december 31, 2017 sales revenue $130,200 expenses cost of goods sold 53,000 depreciation expense 17,500 salaries expense 29,000 rent expense 10,100 insurance expense 4,900 interest expense 4,700 utilities expense 3,900 net income $7,100 lansing company selected balance sheet accounts at december 31 2017 2016 accounts receivable $6,700 $8,000 inventory 3,080 2,090 accounts payable 5,500 6,800 salaries payable 1,100 810 utilities payable 440 270 prepaid insurance 370 500 prepaid rent 440 290 required: prepare the cash flows from operating activities section only of the company’s 2017 statement of cash flows using the indirect method. (amounts to be deducted should be indicated with a minus sign.)