Appropriately and ethically adjust earnings

Assignment Help Operation Management

Reference no: EM131674543

You are the Controller of ABC Manufacturng Corp, a publically traded furniture manufacturing company, based on Long Island. Business has been going well for ABC. Over the last four quarters the EPS have been 50, 54, 59, and 60 cents per share. It is nearing the end of the quarter and most of the analysts that are following your stock are projecting and EPS for the current quarter of 69 cents per share, which looks right in line with what you are projecting for the quarter. However, just as you are going over the quarter to date figures, a wholesale account that has been a long term and important customer (up to 10% of sales) to ABC has just declared Chapter 11 bankruptcy.

What course of action would you take to prepare for the next day's meeting? What additional information might you seek? What would US GAAP require you to report or discolse in your quartely 10Q? How would this be reflected in the quartlerly income statement? What EPS concerns would you expect from the CEO and President? What alternatives are avaliable to appropriately and ethically adjust earnings?

Reference no: EM131674543

Questions Cloud

What are inferential statistics : What are inferential statistics? How can they be used to evaluate health services? Explain in terms of a health services area of your choice.

Discuss what is the idea of cities as urban growth machines : Identify hot spots, on or near campus or your home town. Why are they considered hot spots and what can be done to improve the area

Should the variables be words or letters : Consider the problem of constructing (not solving) crossword puzzle^:^ fitting words into a rectangular grid. The grid, which is given as part of the problem.

Develop a work breakdown structure for a project : Develop a work breakdown structure for a project identified in any of the other conference threads. Include at least three levels in your diagram.

Appropriately and ethically adjust earnings : What course of action would you take to prepare for the next day's meeting? What alternatives are avaliable to appropriately and ethically adjust earnings?

Explain whether strategic management : Explain whether Strategic Management could have been developed without Scientific Management as its predecessor.

Define the defendant to be engaging in deviant behavior : criminal case from your state in which authorities found the defendant to be engaging in deviant behavior

Differentiate between product champions : BRIEFLY differentiate between product champions, sponsors and facilitators.

Calculate fixed number of professors and classrooms : There is a fixed number of professors and classrooms, a list of classes to be offered, and a list of possible time slots for classes.

User Account

All Pages