Becky is surprised to learn that her new employer mueller

Assignment Help Accounting Basics
Reference no: EM13485124

Becky Knauer recently resigned from her position as controller for Shamalay Automotive, a small, struggling foreign car dealer in Upper Saddle River, New Jersey. Becky has just started a new job as controller for Mueller Imports, a much larger dealer for the same car manufacturer. Demand for this particular make of car is exploding, and the manufacturer cannot produce enough to satisfy demand.

The manufacturer's regional sales managers are each given a certain number of cars. Each sales manager then decides how to divide the cars among the independently owned dealerships in the region. Because of high demand for these cars, dealerships all want to receive as many cars as they can from the regional manager.

Becky's former employer Shamalay Automotive, receives only about 25 cars a month; consequently, Shamalay was not very profitable.

Becky is surprised to learn that her new employer, Mueller Imports, receives over 200 cars a month. Becky soon gets another surprise. Every couple of months, a local jeweler bills the dealer $5,000 for "miscellaneous services." Franz Mueller, the owner of the dealership, bbbpersonally approves payment of these invoices , noting that each invoice is a "selling expense." From casual conversations with a sales person, Becky learns that Mueller frequently gives Rolex watches to manufacturer's regional sales manager and other sales executives. Before talking to anyone about this, Becky decides to work through her ethical dilemma.

Requirements:

1. Put yourself in Becky's place

a. What is your ethical issue(s)?

b. What are your options?

c. What are the possible consequences?

d. What should you do?

Reference no: EM13485124

Questions Cloud

Concordia industries collected 105711 from customers in : concordia industries collected 105711 from customers in 2014. of the amount collected 27955 was from revenue accrued
Define cash conversion cycle ccc explain why holding other : define cash conversion cycle ccc. explain why holding other things constant a firms profitability would increase if it
Define and describe the difference between the operating : define and describe the difference between the operating cycle and cash conversion cycle for a typical manufacturing
Glass doctor company manufactures sunglasses following is a : glass doctor company manufactures sunglasses. following is a list of costs the company incurred during may. use the
Becky is surprised to learn that her new employer mueller : becky knauer recently resigned from her position as controller for shamalay automotive a small struggling foreign car
Samuelson and messenger sampm began 2013 with 220 units of : samuelson and messenger sampm began 2013 with 220 units of its one product. these units were purchased near the end of
Define and discuss the function of collateral in short-term : define and discuss the function of collateral in short-term credit
On january 2 2011 jansing corporation acquired a new : on january 2 2011 jansing corporation acquired a new machine with an estimated useful life of five years. the cost of
A company is planning a 35 million dollar marketing : a company is planning a 35 million dollar marketing campaigntv add. explain from what source would they get the money

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd