Who are the stakeholders in this situation?

Reference no: EM13148606

"Robert Turnbull, president of Turnbull Industries, wishes to issue a press release to bolster his company's image and maybe even its stock price, which has been gradually falling. As controller, you have been asked to provide a list of twenty financial ratios along with some other operating statistics relative to Turnbull Industries' first quarter financials and operations.

Two days after you provide the ratios and data requested, Perry Jarvis, the public relations director of Turnbull, asks you to prove the accuracy of the financial and operating data contained in the press release written by the president and edited by Perry. In the press release, the president highlights the sales increase of 25% over last year's first quarter and the positive change in the current ratio from 1.5:1 last year to 3:1 this year. He also emphasizes that production was up 50% over the prior year's first quarter.

You note that the press release contains only positive or improved ratios and none of the negative or deteriorated ratios. For instance, no mention is made that the debt to total assets ratio has increased from 35% to 55%, that inventories are up 89%, and that while the current ratio improved, the acid-test ratio fell from 1:1 to 0.5:1. Nor is there any mention that the reported profit for the quarter would have been a loss had not the estimated lives of Turnbull's plant and machinery been increased by 30%. Perry emphasized, "The prez wants this release by early this afternoon."

Address the following:
Who are the stakeholders in this situation?
Is there anything unethical in president Turnbull's actions?
Should you as controller remain silent? Does Perry have any responsibility?"

Reference no: EM13148606

Questions Cloud

Effect on the demand curve for hybrid cars : The effect on the demand curve for hybrid cars (run on electric and gas and get much greater gas mileage) vs. regular cars (run only on gas) when the price of gas doubles. You need two graphs.

Explain the large difference in income : What must it be? Can you think of any way of justifying such a value for this parameter? How else might you explain the large difference in income between Richland and Poorland?

What genetic elements would the cloning vector have : What biological activity are you interested in cloning genes for?

What mass of pcl5 would be expected : the percent yield for the reaction PCl3 + cl2 yields pcl5 is 85%. what mass of pcl5 would be expected from the reaction of 38.5 grams of pcl3 with an excess of cl2

Who are the stakeholders in this situation? : "Robert Turnbull, president of Turnbull Industries, wishes to issue a press release to bolster his company's image and maybe even its stock price, which has been gradually falling. As controller, you have been asked to provide a list of twenty financ..

Structure transaction to achieve better tax consequences : Dee Corporation's profits on the land will be ordinary income. What are the tax consequences of the asset transfer and land sales if Gene contributes the land to Dee Corporation in exchange for all of its stock? What alternative methods can be use..

How much does she owe the furniture store : Now she wants to pay off the remaining installments in one lump sum (at the end of 12 months). How much does she owe the furniture store?

What is the use of catalase in plants : What is the use of catalase in plants (saying breakdown H2O2 is not enough) Why do they need to produce it? Explain in depth?

Conclude that mean of four sample mean will be equal : x you then repeat this procedure three more times. you learned in class that u_x = u can you conclude that the mean of the four sample mean will be equal to the population mean, 65? why or why not?

User Account

All Pages