Chapter 6: Cash, Temporary Investments, A/R and Notes Receivables

http://www.winnipegsun.com/news/winnipeg/2010/04/29/13769751.html

Summary

“Late-night smash-and-grab burglaries” appear to be the newest trend over the past few days in Winnipeg. In each case, a stolen vehicle is rammed through glass or store doors where the burglars will grab anything they are able to steal and flee the crime scene before any witnesses appear. The police are investigating whether the last four incidents over the past weekend are connected, especially with the last two incidents occurring within thirty minutes of each other. While the majority of the stolen items are not yet found, the stolen GMC Sierra truck used to break the glass and some of the stolen goods were located not too far from the crime scene. Damage to the audio/video store was about $12000 and to the liquor store, $40000. At each smash-and-grab burglary a stolen vehicle is used to break through the doors/windows and abandoned once its purpose has been used.

Connections

The connection I was able to make between the article and Chapter 6 was on the topic of theft, cash and accounts receivable. Each time goods are stolen, the company loses its inventory. As a domino effect, which means less cash (or funds from accounts receivable) lessens for there is less products available for sale. Not only so, now the company has to take out cash to fix any doors or windows that have been damaged. When such an event occurs, internal control systems are tightened. Although cash and inventory is already hard to control, that does not necessarily mean it’s impossible. With the help of hidden security cameras, one can have a better chance of catching any incidents on tape to support their argument. Also, better policies for handling assets will lessen the amount of items that get stolen such as physical measures (example: security guards, alarms) and having each individual safeguard different things so that if he/she does steal, it can only be the item he/she safeguards. Despite the fact that the article deals with theft from outsiders, the measures mentioned would be effective nonetheless.

Reflection

With break and entering theft, it is quite difficult to catch the culprit, especially if you don’t happen to be at home or in the store. Perhaps one way to shorten the length of time needed to find the theft would be to install an alarm system that immediately notifies the police. If such measures fail, put the goods that are more valuable in a locked room with no glass doors or windows that are not easily reached. This way the cost of replacing the inventory would be lower. I always found news about theft from stores very interesting. Each story appears to be quite identical, with the only variable changing being the item stolen. Most robberies occur at night so that they can be in stealth but if you happen to make any noise, there's the risk of being noticed. Noise alerts the surroundings and could bring attention to the crime. Bottom line: don't steal. If you cannot afford it, save up for it. It may be hard but there are people who are worse off than you.

Betty Chan
F.Acc12
1-2