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Narrative 2: Cornick, Inc. Cornick, Inc. sells office products to businesses in

ID: 2530165 • Letter: N

Question

Narrative 2: Cornick, Inc.

Cornick, Inc. sells office products to businesses in the eastern region of the United States. Each month, the IT division at Cornick prints monthly statements and sends them to the accounts receivable (AR) department, where a clerk mails them to the customers. Cornick’s customers mail their payments back to Cornick, where a clerk in AR batches the checks and sends them to the cashier. The AR clerk then uses the payment stub to enter the payments into the computer, where the AR master data are updated to record the payment.

1. Use the narrative to prepare a table of entities and activities.

2. Use the narrative to draw a context diagram.

3. Use narrative to prepare a logical DFD.

Explanation / Answer

1.

2.

Entities Activities IT Department Printing monthly statements and sending to AR department AR Department (Clerk) Mailing monthly statements to customers Customers Payment mailed to AR Department AR Department (Clerk) Checks sent to cashier in batches AR Department (Clerk) Record payments into system AR Master Data Updated by Clerk
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