MANAGERIAL ACCT.-WILEYPLUS BLKBRD PKG
7th Edition
ISBN: 9781118869765
Author: Weygandt
Publisher: WILEY
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Textbook Question
Chapter 9, Problem 9.5BYP
Broadening Your
Ethics Case
BYP9-5 You are an accountant in the budgetary, projections, and special projects department of Femetti Conductor, Inc., a large manufacturing company. The president. Richard Brown, asks you on very short notice to prepare some sales and income projections covering the next 2 years of the company’s much heralded new product tines. He wants these projections for a series of speeches he is making while on a 2-week trip to eight East Coast brokerage firms. The president hopes to bolster Fernetti’s stock sales and price.
You work 23 hours in 2 days to compile the projections, hand-deliver them to the president, and are swiftly but graciously thanked as he departs. A week later, you find time to go over some of your computations and discover a miscalculation that makes the projections grossly overstated. You quickly inquire about the president’s itinerary and learn that he has made half of his speeches and has half yet to make. You are in a quandary as to what to do.
Instructions
(a) What are the consequences of telling the president of your gross miscalculations?
(b) What are the consequences of not telling the president of your gross miscalculations?
(c) What are the ethical considerations to you and the president in this situation?
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BioGrow Sdn. Bhd is a retail fertilizer to farmers in Jitra. The company has approached its Bankers to provide funding for next year’s operations. In considering their funding application, a three - month master budget has been requested for review by the bankers.
As a freelance accounting service provider, you have been approached by the management as a consultant to prepare the 1st quarter budget for the banker’s consideration for its next year’s (2021) operations.
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RM
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698,000
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48,000
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Ending inventory
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BioGrow Sdn. Bhd is a retail fertilizer to farmers in Jitra. The company has approached its Bankers to provide funding for next year’s operations. In considering their funding application, a three - month master budget has been requested for review by the bankers.
As a freelance accounting service provider, you have been approached by the management as a consultant to prepare the 1st quarter budget for the banker’s consideration for its next year’s (2021) operations.
Below is the information as at the end of accounting year of December 2020:
Details
RM
Debtors
23,000
Bank
55,000
Fixed asset at cost
698,000
Accumulated depreciation
98,000
Creditors
48,000
Operating expenses for December
60,000
Sales for December
400,000
Ending inventory
20,000
Retained earnings
120,000
The following additional information was also provided to assist your work.
Depreciation is provided at the rate of 5% on cost of…
Chapter 9 Solutions
MANAGERIAL ACCT.-WILEYPLUS BLKBRD PKG
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