Dirkson has been using a petty cash fund in his company for five years. The fund is locked in the supply cabinet, maintained at $2,000, and is used to pay for regular deliveries of supplies. Dirkson has 10 employees working at his company, and each employee has a key to the supply cabinet. Recently Dirkson has had to replenish the fund more frequently than normal. In the past, he replenished it at the end of each month but lately it has been running low every two weeks. Dirkson has asked you for some advice for controlling the petty cash. Specifically, he would like answers to the following concerns:
1. How many employees should have a key to the petty cash fund?
2. What types of payments should be made from petty cash?
3. How much cash should be maintained in the fund?
4. How often should the fund be replenished? Instructions Advise Dirkson on each of his concerns regarding the petty cash fund.