Reference no: EM13936853
Stock management, ethics. (CMA, adapted)
Range-Tout SARL builds and distributes industrial storage racks using a just-in-time system and maintaining minimal stocks. Range-Tout's earnings increased sharply in 2007 and earnings-based bonuses were paid to the management staff for the first time in several years. Nathalie Carotte, Range-Tout's president, wants earnings to continue growing, even to the point that the 2008 bonuses would be double those of 2007.
Albert Capus, Range-Tout's vice-president of finance, met with Boris Carême of Génie du Bois SA, a primary vendor of Range-Tout's manufacturing supplies and equipment. Capus asked Carême to invoice all of Range-Tout's 2005 purchases (€2 million in equipment and €3 million in supplies) as equipment. The reason Capus gave for his request was that Range-Tout's president had imposed stringent budget constraints on operating costs but not on capital expenditures. Carême agreed to do as Capus asked. Range-Tout expenses all supplies purchases immediately. It depreciates equipment on a straight-line basis over 10 years, assuming a zero disposal price.
While analysing the second-quarter financial statements, Jules Ballès, Range-Tout's finan- cial controller, noticed that only equipment and no supplies had been purchased from Génie du Bois. Ballès, who reported to Capus, immediately brought this matter to Capus's attention. Capus told Ballès of President Carotte's high expectations and of the arrangement made with Boris Carême of Génie du Bois. Ballès requested that he be allowed to correct the accounts and urged that the arrangement with Génie du Bois be discontinued. Capus refused and told Ballès not to become involved in the Génie du Bois arrangement.
After thinking about the matter for a while, Ballès arranged to meet with Nathalie Carotte and he disclosed the arrangement Capus had made with Génie du Bois.
Required
1. Calculate the effect on Range-Tout's 2008 operating profit of showing supplies purchased in 2008 as equipment purchases. Do you agree with Jules Ballès, Range-Tout's financial controller, that the supplies purchased from Génie du Bois SA were accounted for improperly? Explain your answer.
2. Explain why the use of the alternative accounting method to manipulate reported earnings is unethical.
3. Without prejudice to your answers to requirements 1 and 2, assume that Albert Capus's arrangement with Génie du Bois SA is not ethical in a professional sense. Discuss whether Ballès's actions were appropriate.
|
Program to modify double linked list
: Modify Double Linked List code to include following index based access operations.
|
|
Summary of the main points of the article
: Find an article on the macro economy (inflation, employment, economic growth). Write a 250 word summary of the main points of the article
|
|
Zone of acceptance for a product or category
: In what way might deal sites affect the zone of acceptance for a product or category? What are the implications for marketers?
|
|
Knowledge about the programming language c
: The above segment descriptor describes a memory segment in terms of its start address, its size and whether it is ALLOCATED or FREE. This descriptor is part of a list (contains a pointer to next segment descriptor). Initially, there is only one se..
|
|
Do you agree with jules balles range-touts financial control
: Do you agree with Jules Ballès, Range-Tout's financial controller, that the supplies purchased from Génie du Bois SA were accounted for improperly? Explain your answer.
|
|
Consumer behavior attitude about luxury brands
: Looking for a reliable assignment service provide to provide me with an urgent 5 pages report On Consumer behavior attitude about luxury brands.
|
|
Write a program using a function and a switch statement
: Write a program using a function and a switch statement. The user should be prompted to enter a number in main. The function is called and the number entered is passed to the function. This function parameter will then be used in a switch to disco..
|
|
Software tools for managing and analyzing qualitative data
: Craft a 3- page paper and 5 references in which you do the following: Compare and contrast software tools for managing and analyzing qualitative data
|
|
Design your own test program to test the modification.
: Add method Modify(int id, char*, char*, float, char*) to modify the id's record. If such id not exist, add it as a new record into the list
|