Who will be negatively impacted if you do comply

Assignment Help Accounting Basics
Reference no: EM132185084

Question: Instructions: • Read the following scenario.

• Answer the questions that follow.

• This is an example of how this assignment should be done:

1. What is the accounting problem that the Linbarger Company faces?

Answer:

Scenario: Imagine you are the assistant controller in charge of general ledger accounting at Linbarger Company. Your company has a large loan from an insurance company. The loan agreement requires that the company's cash account balance be maintained at $200,000 or more, as reported monthly. At June 30, the cash balance is $80,000. You give this update to Lisa Infante, the financial vice president. Lisa is nervous and instructs you to keep the cash receipts book open for one additional day for purposes of the June 30 report to the insurance company. Lisa says, "If we don't get that cash balance over $200,000, we'll default on our loan agreement. They could close us down, put us all out of our jobs!" Lisa continues, "I talked to Oconto Distributors (one of Linbarger's largest customers) this morning. They said they sent us a check for $150,000 yesterday. We should receive it tomorrow. If we include just that one check in our cash balance, we'll be in the clear. It's in the mail!"

1. What is the accounting problem that the Linbarger Company faces?

2. What are the ethical considerations in this case? Provide rationale for why these are ethical considerations.

3. What are the negative impacts that can happen if you do not follow Lisa Infante's instructions to wait one more day to post the balance?

4. Who will be negatively impacted if you do comply? Provide a rationale for why these individuals will be impacted.

5. What is one alternative that you could pursue in this scenario? Support your recommendations with information you learned in this class.

Reference no: EM132185084

Employees benefit from alternative work arrangements

How can employees benefit from alternative work arrangements? How can employers benefit from alternative work arrangements? What are some of the possible negative outcomes for

Considering investing in its own transport fleet

Your company is considering investing in its own transport fleet. The present position is that carriage is contracted to an outside organization. The life of the transport f

Did the accountant record the transaction correctly

Cheap Toys sells merchandise to the general public for cash or credit. It accepts several major credit cards. The company pays an average fee of 4% of sales to the credit ca

Computing loss of impairment

Donald Corporation owns machinery with a book value of $670,000. It is estimated that the machinery will generate future cash flows of $560,000.

Describe purpose and content of each of the given reports

Explain the purpose and content of each of these reports. Express your thoughts on other types of financial statement reports such as Qualified Opinions, Adverse Opinions, an

What is the variable cost per unit

The Junior League of Tampa, Florida, collected recipes from members and published a cookbook entitled Life of the Party. The book will sell for $22 per copy. The chair woman

Equity and the balance in sloanes investment account

On January 1, 2007, Sloane Co. purchased 25% of Orr Corp.'s common stock; no goodwill resulted from the purchase. Sloane appropriately carries this investment at equity and

Compute the amount of the bonus payable to the employees

For the year ended December 31, 2011, Winter Company has implemented an employee bonus program equal to 3% of Winter's net income, which employees will share equally. Winter

Reviews

Write a Review

 
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