Prepare a data flow diagram for each of the cycles described in the narrative. This DFD will be your understanding of th
Posted: Mon May 02, 2022 5:20 pm
Prepare a data flow diagram for each of the cycles described in
the narrative. This DFD will be your understanding of the logical
flow of data through the system. Prepare, at a minimum, the Context
level, Level 0, and Level 1 diagrams.
Falcor Supplies is a distributor of high tech teaching
equipment. Its primary target customers are
schools in the region who purchase the teaching equipment for
classrooms and online use. The
company's main competitors in the industry are other high tech
teaching supply companies.
Falcor Supplies started in 2011 with an office in Carbondale,
Illinois, initially targeting local universities
and colleges. The company realized there was a high demand for
reasonably priced equipment and the
convenience of using the internet to shop for this type of
equipment. After its second year, with a
constant increase in customer orders, Falcor decided to focus on
selling to more colleges and
universities throughout the Midwest. The move has had a positive
effect on net profits and demand,
supporting the decision to continue the growth of the company.
Falcor recently expanded its facility to
be able to fulfill a higher demand for its products. Its customer
base ranges from areas as close as
Southern Illinois University to as far as universities in the
surrounding states. As of 2015, there were 60
employees. Their prior year's gross sales were $12 million.
Falcor's market share is on the rise but is not yet comparable to
some of the larger school supply
wholesalers. However, the corporation's goals for the upcoming
years include establishing itself as an
industry player through increased customer satisfaction and
loyalty. Falcor is also considering the
installation of a new information-processing system. This system
will reengineer the company's current
business functions by reducing loopholes in its internal control
problems. It will also make the overall
sales process more efficient.
Falcor purchases the products it sells from various wholesale
suppliers and distributors, totaling 22
suppliers nationwide. The office has its own warehouse, stores its
own merchandise, and is responsible
for replenishing the inventory. Falcor has had no substantial
problems in the past with their suppliers.
On the other hand, it has encountered problems with excess
inventory, stock-outs, and discrepancies
with inventory records.
Revenue Cycle
Becoming a customer of Falcor involves calling the toll-free number
and speaking with one of the sales
representatives, who establishes a new customer account. A
customer's account record contains the
information about the school including, a contact person's name,
address, phone number, previous
orders made with the company, and a sequentially assigned unique
customer account number. Falcor
does not sell directly to teachers, only to the school. All sales
are wholesale sales, so no sales taxes
apply.
Customers place orders via the Internet. A sales representative
then prepares a sales order record.
John, in the billing department, reviews the sales orders, adds
prices and shipping charges, and prints a
copy (invoice) that is sent to the customer. John then records the
sale in the sales journal.
Chris, a warehouse employee, verifies the information on the sales
order, picks the goods, prints the
packing slip, and updates the inventory subsidiary ledger. Chris
then prepares the bill of lading for the
carrier. The goods are then shipped.Sandy in AR uses the remittance
advices to update the customer accounts and general ledger
control
accounts. When customers make a payment on account, they send both
the remittance advice (that
was attached to the invoice) and a check with the account number on
it.
Scott, a mail room clerk, opens all the mail. He separates the
checks, cash, and remittance advices and
prepares a remittance list, which, along with the checks and cash,
is sent to the cash receipts
department. He sends the remittance advices to Sandy.
Laura, the cash receipts clerk, reconciles the checks with the
remittance list, prepares the deposit slip,
updates the general ledger, and then deposits the checks in the
bank. She sends the deposit slip to
Sandy in the accounting department.
Upon receiving the bank receipt, Sandy files it and updates the
cash receipts journal to record the
amount deposited. The customer has a 15-day grace period, beginning
upon the receipt of the
equipment ordered. If, at the end of that period, a payment is
received, it is understood that the goods
have been accepted. If, on the other hand, the customer is
dissatisfied with the product for any reason,
they can return it to Falcor at no charge. However, to return the
equipment, the customer must
contact Falcor to obtain an authorization number. When the returned
goods arrive, Chris prepares the
return record and updates the inventory subsidiary ledger. Printed
copies of the return record are sent
to John and Sandy. John reviews the return record and updates the
sales journal. Sandy credits the
customer's account and updates the general ledger to reverse the
transaction.
Expenditure Cycle
The purchases system and the cash disbursements system compose
Falcor's expenditure cycle. The
three departments within the purchasing system are warehouse,
purchasing, and accounting. The
purchasing function begins in the warehouse, which stores the
inventory of equipment. Jim, the
warehouse manager, compares inventory records with the various
demand forecasts of each week,
which the market research analyst team provides, to determine the
necessary orders to make. At the
end of the week, Jim prepares the purchase requisition
record.
Sara, the purchasing clerk, reviews the purchase requisitions,
selects the suppliers, and prepares the
purchase orders. Copies of the purchase orders are sent to the
supplier and to accounting.
When the shipment arrives, Chris, the warehouse clerk, working from
a blind copy of the purchase
order, counts and inspects the goods for damage. He then prepares a
receiving report and updates the
inventory records.
Upon receipt of the supplier's invoice, Diana, the accounting
clerk, compares it to the respective
purchase order and receiving report. If the invoice is accurate,
Diana creates an AP record, sets a due
date for payment, and updates general ledger accounts.
On the due date, Evan, the cash disbursements clerk, closes the AP
record, cuts a check, and sends it to
the supplier. He then updates the check register and the general
ledger.
the narrative. This DFD will be your understanding of the logical
flow of data through the system. Prepare, at a minimum, the Context
level, Level 0, and Level 1 diagrams.
Falcor Supplies is a distributor of high tech teaching
equipment. Its primary target customers are
schools in the region who purchase the teaching equipment for
classrooms and online use. The
company's main competitors in the industry are other high tech
teaching supply companies.
Falcor Supplies started in 2011 with an office in Carbondale,
Illinois, initially targeting local universities
and colleges. The company realized there was a high demand for
reasonably priced equipment and the
convenience of using the internet to shop for this type of
equipment. After its second year, with a
constant increase in customer orders, Falcor decided to focus on
selling to more colleges and
universities throughout the Midwest. The move has had a positive
effect on net profits and demand,
supporting the decision to continue the growth of the company.
Falcor recently expanded its facility to
be able to fulfill a higher demand for its products. Its customer
base ranges from areas as close as
Southern Illinois University to as far as universities in the
surrounding states. As of 2015, there were 60
employees. Their prior year's gross sales were $12 million.
Falcor's market share is on the rise but is not yet comparable to
some of the larger school supply
wholesalers. However, the corporation's goals for the upcoming
years include establishing itself as an
industry player through increased customer satisfaction and
loyalty. Falcor is also considering the
installation of a new information-processing system. This system
will reengineer the company's current
business functions by reducing loopholes in its internal control
problems. It will also make the overall
sales process more efficient.
Falcor purchases the products it sells from various wholesale
suppliers and distributors, totaling 22
suppliers nationwide. The office has its own warehouse, stores its
own merchandise, and is responsible
for replenishing the inventory. Falcor has had no substantial
problems in the past with their suppliers.
On the other hand, it has encountered problems with excess
inventory, stock-outs, and discrepancies
with inventory records.
Revenue Cycle
Becoming a customer of Falcor involves calling the toll-free number
and speaking with one of the sales
representatives, who establishes a new customer account. A
customer's account record contains the
information about the school including, a contact person's name,
address, phone number, previous
orders made with the company, and a sequentially assigned unique
customer account number. Falcor
does not sell directly to teachers, only to the school. All sales
are wholesale sales, so no sales taxes
apply.
Customers place orders via the Internet. A sales representative
then prepares a sales order record.
John, in the billing department, reviews the sales orders, adds
prices and shipping charges, and prints a
copy (invoice) that is sent to the customer. John then records the
sale in the sales journal.
Chris, a warehouse employee, verifies the information on the sales
order, picks the goods, prints the
packing slip, and updates the inventory subsidiary ledger. Chris
then prepares the bill of lading for the
carrier. The goods are then shipped.Sandy in AR uses the remittance
advices to update the customer accounts and general ledger
control
accounts. When customers make a payment on account, they send both
the remittance advice (that
was attached to the invoice) and a check with the account number on
it.
Scott, a mail room clerk, opens all the mail. He separates the
checks, cash, and remittance advices and
prepares a remittance list, which, along with the checks and cash,
is sent to the cash receipts
department. He sends the remittance advices to Sandy.
Laura, the cash receipts clerk, reconciles the checks with the
remittance list, prepares the deposit slip,
updates the general ledger, and then deposits the checks in the
bank. She sends the deposit slip to
Sandy in the accounting department.
Upon receiving the bank receipt, Sandy files it and updates the
cash receipts journal to record the
amount deposited. The customer has a 15-day grace period, beginning
upon the receipt of the
equipment ordered. If, at the end of that period, a payment is
received, it is understood that the goods
have been accepted. If, on the other hand, the customer is
dissatisfied with the product for any reason,
they can return it to Falcor at no charge. However, to return the
equipment, the customer must
contact Falcor to obtain an authorization number. When the returned
goods arrive, Chris prepares the
return record and updates the inventory subsidiary ledger. Printed
copies of the return record are sent
to John and Sandy. John reviews the return record and updates the
sales journal. Sandy credits the
customer's account and updates the general ledger to reverse the
transaction.
Expenditure Cycle
The purchases system and the cash disbursements system compose
Falcor's expenditure cycle. The
three departments within the purchasing system are warehouse,
purchasing, and accounting. The
purchasing function begins in the warehouse, which stores the
inventory of equipment. Jim, the
warehouse manager, compares inventory records with the various
demand forecasts of each week,
which the market research analyst team provides, to determine the
necessary orders to make. At the
end of the week, Jim prepares the purchase requisition
record.
Sara, the purchasing clerk, reviews the purchase requisitions,
selects the suppliers, and prepares the
purchase orders. Copies of the purchase orders are sent to the
supplier and to accounting.
When the shipment arrives, Chris, the warehouse clerk, working from
a blind copy of the purchase
order, counts and inspects the goods for damage. He then prepares a
receiving report and updates the
inventory records.
Upon receipt of the supplier's invoice, Diana, the accounting
clerk, compares it to the respective
purchase order and receiving report. If the invoice is accurate,
Diana creates an AP record, sets a due
date for payment, and updates general ledger accounts.
On the due date, Evan, the cash disbursements clerk, closes the AP
record, cuts a check, and sends it to
the supplier. He then updates the check register and the general
ledger.