Sun Prairie

Sun Prairie/Crafty Cash

Cindy Nyglens owns a small craft shop in downtown Sun Prairie. Last week, Cindy received an anonymous typed note in an unstamped envelope, left on her desk. The note read:

None of her employees knew where the envelope came from when she questioned them about its appearance. Cindy is obviously concerned, but unsure how to go about investigating the tip herself. She contacted you for assistance.

You arrange to observe store operations, under the premise of providing feedback as a consultant for improving and streamlining business operations. Cindy has been trying to grow her business in the past seven months by increasing advertising and promotions (including a new coupon discount program, effective June 2012) and expanding product offerings, so this is a feasible explanation to her employees. You make the following observations:

* Cindy has five employees—four clerks (Angela, Becky, Susie, Wanda), who assist

customers and conduct sales transactions, and a store manager (Lisa), who oversees the clerks, handles minor customer issues, summarizes and records daily sales, and prepares bank deposits. Cindy monitors perpetual inventory records and orders inventory, pays bills, handles payroll, takes deposits to the bank, and reconciles bank statements.

* The store is open Tuesday through Saturday. Lisa, Angela, Susie, and Wanda each work Tuesday through Saturday. Becky is a high school student who only works Saturday.

* There are two electronic registers. Each employee must enter a unique code in order to access the registers. Clerks have full authority for entering all types of transactions in the registers. The registers read inventory barcodes, so transactions automatically update Cindy’s perpetual inventory records. The registers issue two copies of receipts—one copy for customers and one copy for the store—in addition to recording all register actions on a register tape.

* Cindy accepts only cash or credit...