User Account

All Pages

What should margie do in this situation and why

Assignment Help Financial Management
Reference no: EM132331422

Question

Margie Johnson is a staff accountant at ToolEx Company, a manufacturer of tools and equipment. The company is under pressure from investors to increase earnings, and the president of the company expects the accounting department to "make this happen." Margie's boss, who has been a mentor to her, is concerned that if earnings do not increase, he will be terminated.

Shortly after the end of the fiscal year, the company performs a physical count of the inventory. When Margie compares the physical count to the balance in the inventory account, she finds a significant amount of inventory shrinkage. The amount is so large that it will result in a significant drop in earnings this period. Margie's boss asks her not to make the adjusting entry for shrinkage this period.

He assures her that they will get "caught up" on shrinkage in the next period, after the pressure is off to reach this period's earnings goal. Margie's boss asks her to do it as a personal favor to him.

What should Margie do in this situation and why?

Reference no: EM132331422

Questions Cloud

Difference between natural selection-ecological succession : What is the difference between natural selection and ecological succession? What is deforestation? How does this affect the environment?
What would be the amount related to the bonds that myriad : What would be the amount(s) related to the bonds that Myriad would report in its statement of cash flows for the year ended December 31, 2018?
Briefly list and explain each key question associated : Briefly list and explain each key question associated with the Web Analytics 2.0 paradigm.
Current international relations system : An accurate definition of the current International Relations (IR) system and how power is distributed is crucial in forming a sound foreign policy.
What should margie do in this situation and why : Margie Johnson is a staff accountant at ToolEx Company, a manufacturer of tools and equipment. The company is under pressure from investors.
What actions should the auditors take with respect to split : The Blue Corporation was audited for the fiscal year ended March 31. The audit was completed on May 19; prior to the release of the report, auditors.
What is the journal entry to record the retirement : Boran Corporation has bonds outstanding with a par value of $500,000. The unamortized discount on these bonds is $24,500.
Prepare the journal entry to record the issuance of bonds : On December 31, 2015, when the market rate was 8%, Olde West Corp issued $2,000,000, 10%, 5-year bonds. Interest is payable semiannually.
Calculate the rate of return on total assets for 2018 : If the market rate of interest is 6%, the issue price of 6% bonds paying interest semiannually with a face value of $100,000 will be Greater.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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