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Harrington Books Sample Solution by Elizabeth LaRegina Report to: Peter Harrington Subject: Accounting Policies and Records for Harrington Books. Introduction In this report, I will outline key accounting policies and records for Harrington Books. As Harrington Books is a new company, I am going to try and keep my comments and recommendations as straightforward as possible. From my perspective, the following are the key users of the financial statements, and their objectives: Peter Harrington - as the owner your concerns centre around tax minimization, internal control and of course, maximizing profit. Bank - since the bank has provided a line of credit to Harrington books, and has taken business assets as collateral, they will also be interested in financial information Manager - since the newly hired manager is on a variable compensation plan with a bonus based on year end profits, he or she will be concerned with how those profits are derived CCRA - the tax authorities...

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