Reference no: EM133057844
Question - Yvette Young was looking forward to her first day in a new role as financial controller for the manufacturing unit at Speedy Motors Ltd, although by the end of her first day she wished she had never changed jobs.
Yvette had worked with Speedy Motors for eight years. Her last role was as a senior accountant supporting the group CFO, Ali McAllister. McAllister had always been impressed by Yvette and had recommended her for this new role. In her new role, Yvette will continue to report to the CFO, as well as to the plant manager, Rory Ranger.
Yvette's first meeting had been with Rory - the plant manager - and Yvette was keen to make a good impression. Year-end was fast approaching, and Rory seemed quite concerned that they may miss their financial targets. Yvette wasn't sure if Rory was joking or serious when he added, "and you won't be popular if we miss the targets". Yvette was left feeling confused.
Yvette's next meeting had been with Ricardo, the plant accountant, to review the financial statements for the previous month. Yvette had wanted to review the accounts in detail to make sure everything was ready for year-end. That's when Yvette noticed a large jump in sales for the month. When she asked Ricardo, he explained that new orders worth $1.5 million had just been booked as sales. Yvette raised her eyebrows "but these orders won't be completed and shipped before the year-end" she added. Ricardo replied, "don't worry about it, we book sales before they are shipped all the time. Rory says it's ok since they will become sales eventually". Yvette started to speak but Ricardo interrupted, "I don't know if I told you", he said, "but my wife recently had a baby, and I could really do with this year's bonus".
REQUIRED -
a) Describe the ethical dilemma that Yvette is facing.
b) What ethical principle(s) would Yvette be violating if she allows the orders to be booked as sales?
c) Explain the possible implications to the organization if Yvette ignores the ethical dilemma you have identified in (a).
d) Explain how the organizational culture may have influenced and contributed to the ethical dilemma that you have identified in (a).
e) Identify and describe TWO alternative courses of action that Yvette can take to resolve the ethical dilemma.
|
What the adjusted cash balance per the bank records
: Ryan's June bank statement shows $28,361 on deposit in the bank. What the adjusted cash balance per the bank records
|
|
What amount will be reported for the long-term investment
: The investor paid a discounted price for the bonds of $95,735. What amount will be reported for the long-term investment
|
|
What is his taxable income after taking property taxes
: If property 1 is Jesse business building (he owns the property) and property 2 is his primary residence, what is his taxable income after taking property taxes
|
|
How much to be collected in June
: Question - Collection: 70% in month of sale, 25% in month after sale, and 5% in 2nd month after sale. How much to be collected in June
|
|
Describe the ethical dilemma that yvette is facing
: Describe the ethical dilemma that Yvette is facing. What ethical principle(s) would Yvette be violating if she allows the orders to be booked as sales
|
|
Journalize the lump-sum purchase of the three assets
: Journalize the lump-sum purchase of the three assets for a total cost of $155,000. Assume you sign a note payable for this amount
|
|
What was the carrying amount of the van at the date of sale
: Question - On January 1, 2017, Hard Rock Brewery purchased a van for $41,000. What was the carrying amount of the van at the date of? sale
|
|
How many pool cues need to be produced
: First Class, Inc., expects to sell 28,000 pool cues for $14 each. Direct materials costs are $3, direct manufacturing labor is $5, How many pool cues need
|
|
Provide the journal entries for both years
: Assuming asset revaluations were undertaken for the land in both 20X3 and 20X5, provide the journal entries for both years
|