What would be the accounting impact of changing the supplier

Assignment Help Accounting Basics
Reference no: EM131542030

Assignment

The company you work for sells screen-printed T-shirts. Your company sources plain white T-shirts from a supplier in a third world country; then unique designs are screen-printed onto the white T-shirts and marked up to retail price.

You recently discovered that the current supplier for your company's T-shirts is employing child labor in the factories in their country, and paying well below the rate paid to adults. This is not unusual in that country, and the local government routinely looks the other way at companies who do it. The result is that the supplier is able to provide T-shirts to your company at a very low price, relative to the competition.

Should your company change suppliers based on this new information - Why or why not? What would be the accounting impact of changing the supplier (identify specific accounts impacted)? Provide support for your opinion.

Reference no: EM131542030

Questions Cloud

What is holistic healing : What is holistic healing? What do we mean by Worldview? Explain Holistic ethics.
Is optimizing inventory a best practice or an academic ideal : Is optimizing inventory a best practice or an academic ideal? Could there be certain opportunity costs associated with an optimal inventory.
Evaluate the benefits of combining the two models : Evaluate the similarities and differences of both the analytical and emergent approaches to strategic management.
What is the present value of the annuity : The interest rate is 9 percent compounded monthly for the first six years, and 7 percent compounded monthly thereafter.
What would be the accounting impact of changing the supplier : What would be the accounting impact of changing the supplier (identify specific accounts impacted)? Provide support for your opinion.
Examine vertical integration in terms of overall strategy : Examine the pros and cons of vertical integration in terms of overall strategy.
Type of financial institutions : Briefly discuss the purpose and role that each type of financial institutions (depositary, contractual, and investment) play in the U.S. economy.
When you have completed your grid : When you have completed your grid, explain in at least one well-developed paragraph which item you have chosen to buy and why.
Define the financial planning process : Define the financial planning process. List the elements of a good financial plan.

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