Harmony is the Senior accountant of a Bank. Junior accountants of all the branches reportto her. While preparing for the final quarter sales report, she finds that two out of the fourbranches have failed to achieve the sales targets for the second consecutive quarter.According to the company policy, the branches that fail to achieve targets in twoconsecutive quarters have to be closed. Harmony feels sad for all the people losing theirjobs and decides that she will overstate the sales revenue generated by every branch andreport manipulated figures in the financial statements. Answer the following questions. Describe Harmony’s actions from ethical standpoint. Is she doing the right thing? What can be the consequences of Harmony’s actions. What are the risks involved? What would you suggest to Harmony? Please note this is not an essay.

Harmony is the Senior accountant of a Bank. Junior accountants of all the branches reportto her. While preparing for the final quarter sales report, she finds that two out of the fourbranches have failed to achieve the sales targets for the second consecutive quarter.According to the company policy, the branches that fail to achieve targets in twoconsecutive quarters have to be closed. Harmony feels sad for all the people losing theirjobs and decides that she will overstate the sales revenue generated by every branch andreport manipulated figures in the financial statements. Answer the following questions. Describe Harmony’s actions from ethical standpoint. Is she doing the right thing? What can be the consequences of Harmony’s actions. What are the risks involved? What would you suggest to Harmony? Please note this is not an essay.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter8: Evolutionary Solver: An Alternative Optimization Procedure

Section8.6: Fitting An S-shaped Curve

Problem 12P

See similar textbooks

Similar questions

Harmony is the Senior accountant of a Bank. Junior accountants of all the branches report to her. While preparing for the final quarter sales report, she finds that two out of the four branches have failed to achieve the sales targets for the second consecutive quarter. According to the company policy, the branches that fail to achieve targets in two consecutive quarters have to be closed. Harmony feels sad for all the people losing their jobs and decides that she will overstate the sales revenue generated by every branch and report manipulated figures in the financial statements. Answer the following questions. Describe Harmony’s actions from ethical standpoint. Is she doing the right thing? What can be the consequences of Harmony’s actions. What are the risks involved? What would you suggest to Harmony?
aren Johnson, CFO for Raucous Roasters (RR), a specialty coffee manufacturer, is rethinking her company’s working capital policy considering a recent scare she faced when RR’s corporate banker, citing a nationwide credit crunch, balked at renewing RR’s line of credit. Had the line of credit not been renewed, RR would not have been able to make payroll, potentially forcing the company out of business. Although the line of credit was ultimately renewed, the scare has forced Johnson to examine carefully each component of RR’s working capital to make sure it is needed, with the goal of determining whether the line of credit can be eliminated entirely. In addition to (possibly) freeing RR from the need for a line of credit, Johnson is well aware that reducing working capital can also add value to a company by improving its EVA (Economic Value Added). In her corporate finance course Johnson learned that EVA is calculated by taking net operating profit after taxes (NOPAT) and then subtracting…
Seas Beginning sells clothing by mail order. Animportant question is when to strike a customer fromthe company’s mailing list. At present, the companystrikes a customer from its mailing list if a customerfails to order from six consecutive catalogs. Thecompany wants to know whether striking a customerfrom its list after a customer fails to order from fourconsecutive catalogs results in a higher profit percustomer. The following data are available:■ If a customer placed an order the last time shereceived a catalog, then there is a 20% chance shewill order from the next catalog.■ If a customer last placed an order one catalog ago,there is a 16% chance she will order from the nextcatalog she receives.■ If a customer last placed an order two catalogs ago,there is a 12% chance she will order from the nextcatalog she receives.■ If a customer last placed an order three catalogsago, there is an 8% chance she will order from thenext catalog she receives.■ If a customer last placed an order four…
Forrester and Cohen is a small accounting firm, managedby Joseph Cohen since the retirement in December of hispartner Brad Forrester. Cohen and his three CPAs can togetherbill 640 hours per month. When Cohen or another accountantbills more than 160 hours per month, he or she gets an additional"overtime" pay of$62.50 for each of the extra hours: this is aboveand beyond the $5,000 salary each draws during the month.(Cohen draws the same base pay as his employees.) Cohenstrongly discourages any CPA from working (billing) more than240 hours in any given month. The demand for billable hours forthe firm over the next 6 months is estimated below: Cohen has an agreement with Forrester, his former partner,to help out during the busy tax season, if needed, for an hourly feeof $125. Cohen will not even consider laying off one of his colleaguesin the case of a slow economy. He could, however,…
Dave is the owner of Fine Pool and Spa. He just discovered that his that his trusted friend Chris, who has been his accountant for over 20 years, has been skimming money from Fine’s bank account. Dave has to decide whether to ignore his Chris’s actions in order to avoid conflict and bad publicity, or to have Chris arrested for embezzlement. What is Dave facing? a. whistle – blower b. a synergy factor c. a social audit d. an ethical dilemma e. an issue of corporate governance
Evaluate the following statements:S1. Any investment income of general borrowing is deducted from capitalizable borrowing cost.S2. If the asset is financed by specific borrowing but a portion is used for working capital purposes, the borrowing shall be treated as general borrowing in determining capitalizable borrowing cost. a.False, False b.False, True c.True, True d.True, False
Suppose that Mac only kept track of the number of magazines sold. Would thisgive an accurate representation of the demand for the Journal? Under what circumstances would the actual demand and the number sold be close, and underwhat circumstances would they differ by a substantial amount?
A purchasing agent for a particular type of silicon wafer used in the production ofsemiconductors must decide among three sources. Source A will sell the siliconwafers for $2.50 per wafer, independently of the number of wafers ordered. Source Bwill sell the wafers for $2.40 each but will not consider an order for fewer than3,000 wafers, and Source C will sell the wafers for $2.30 each but will not acceptan order for fewer than 4,000 wafers. Assume an order setup cost of $100 and anannual requirement of 20,000 wafers. Assume a 20 percent annual interest rate forholding cost calculations.c. If the replenishment lead time for wafers is three months, determine the reorderpoint based on the on-hand level of inventory of wafers
A purchasing agent for a particular type of silicon wafer used in the production ofsemiconductors must decide among three sources. Source A will sell the siliconwafers for $2.50 per wafer, independently of the number of wafers ordered. Source Bwill sell the wafers for $2.40 each but will not consider an order for fewer than3,000 wafers, and Source C will sell the wafers for $2.30 each but will not acceptan order for fewer than 4,000 wafers. Assume an order setup cost of $100 and anannual requirement of 20,000 wafers. Assume a 20 percent annual interest rate forholding cost calculations.b. What is the optimal value of the holding and setup costs for wafers when theoptimal source is used?
Emily works for a small software company and oversees software quality assurance. The company recently developed an inventory control system for a national clothing manufacturer. The system gathers sales information on an hourly basis from clothing retailers nationwide. This information is then used by all departments (including the accounting, shipping, and ordering departments) to control the functions of the clothing manufacturer. Emily suspects that the inventory functions of the system are not sufficiently tested, although they have passed all their contracted (legal) tests. However, she is pressured by her employers to sign off on the software. Whilst she is only required to perform tests which have been agreed to in the original contract, her considerable experience in software testing has led her to be concerned over the quality of the system. Her employers say that they will go out of business if they do not deliver the software on time. Emily knows that if any section of…
Retailer Budget D. Tomlinson Retail seeks your assistance in developing cash and other budgetinformation for May, June, and July. The store expects to have the following balances at the end ofApril:Cash $ 5,500Accounts receivable 437,000Inventories 309,400Accounts payable 133,055The firm follows these guidelines in preparing its budgets:∙ Sales. All sales are on credit with terms of 3/10, n/30. Tomlinson bills customers on the last day ofeach month. The firm books receivables at gross amounts and collects 60% of the billings withinthe discount period, 25% by the end of the month, and 9% by the end of the second month. Thefirm’s experience suggests that 6% is likely to be uncollectible and is written off at the end of thethird month.∙ Purchases and expenses. All purchases and expenses are on open account. The firm pays its payables over a 2-month period with 54% paid in the month of purchase. Each month’s units of endinginventory should equal 130% of the next month’s cost of sales. The…
CASE JOVINA BUENAARTE PLASTIC PRODUCTS: LET ME TRY AGAIN Miss Jovina Buenaarte was thirty-six years old way back in 2003 when she first started plastic products. She made up her mind to operate this business when her friend, a plastic maker, complained about the unavailability of plastic products in the area which is of standard quality. Those that are locally máde do not conform to the requirements set by various users. With a P50,000 starting capital, Ms. Buenaarte proceeded to produce plastic products like bags and kitchen utensils. She personally supervised the mixing of the necessary materials for production. Because of good quality control, her products surpassed the requirements of buyers. Her sales increased considerably even if her selling prices are a little higher than those of competitors. The firm soon grew into a multi-million peso operation. The number of her employees increased to about a hundred with five assigned to administration and the rest either as drivers or…