Becky is surprised to learn that her new employer mueller

Assignment Help Accounting Basics
Reference no: EM13485124

Becky Knauer recently resigned from her position as controller for Shamalay Automotive, a small, struggling foreign car dealer in Upper Saddle River, New Jersey. Becky has just started a new job as controller for Mueller Imports, a much larger dealer for the same car manufacturer. Demand for this particular make of car is exploding, and the manufacturer cannot produce enough to satisfy demand.

The manufacturer's regional sales managers are each given a certain number of cars. Each sales manager then decides how to divide the cars among the independently owned dealerships in the region. Because of high demand for these cars, dealerships all want to receive as many cars as they can from the regional manager.

Becky's former employer Shamalay Automotive, receives only about 25 cars a month; consequently, Shamalay was not very profitable.

Becky is surprised to learn that her new employer, Mueller Imports, receives over 200 cars a month. Becky soon gets another surprise. Every couple of months, a local jeweler bills the dealer $5,000 for "miscellaneous services." Franz Mueller, the owner of the dealership, bbbpersonally approves payment of these invoices , noting that each invoice is a "selling expense." From casual conversations with a sales person, Becky learns that Mueller frequently gives Rolex watches to manufacturer's regional sales manager and other sales executives. Before talking to anyone about this, Becky decides to work through her ethical dilemma.

Requirements:

1. Put yourself in Becky's place

a. What is your ethical issue(s)?

b. What are your options?

c. What are the possible consequences?

d. What should you do?

Reference no: EM13485124

Questions Cloud

Concordia industries collected 105711 from customers in : concordia industries collected 105711 from customers in 2014. of the amount collected 27955 was from revenue accrued
Define cash conversion cycle ccc explain why holding other : define cash conversion cycle ccc. explain why holding other things constant a firms profitability would increase if it
Define and describe the difference between the operating : define and describe the difference between the operating cycle and cash conversion cycle for a typical manufacturing
Glass doctor company manufactures sunglasses following is a : glass doctor company manufactures sunglasses. following is a list of costs the company incurred during may. use the
Becky is surprised to learn that her new employer mueller : becky knauer recently resigned from her position as controller for shamalay automotive a small struggling foreign car
Samuelson and messenger sampm began 2013 with 220 units of : samuelson and messenger sampm began 2013 with 220 units of its one product. these units were purchased near the end of
Define and discuss the function of collateral in short-term : define and discuss the function of collateral in short-term credit
On january 2 2011 jansing corporation acquired a new : on january 2 2011 jansing corporation acquired a new machine with an estimated useful life of five years. the cost of
A company is planning a 35 million dollar marketing : a company is planning a 35 million dollar marketing campaigntv add. explain from what source would they get the money

Reviews

Write a Review

Accounting Basics Questions & Answers

  Youre required to prepare an audit plan for federal

youre required to prepare an audit plan for federal department or agency. you will research and select a federal

  What was the gain or loss on the sale of the equipment

Lawler Clothing sold manufacturing equipment for $34,000. Lawler originally purchased the equipment for $98,000, and depreciation through the date of sale totaled $80,000.

  Affecting the taxable income of owners

Sara owns a sole proprietorship and Phil is the sole shareholder of a C (regular) corporation. Each business sustained a $9,000 operating loss and a $2,000 capital loss for the year. Evaluate how these losses will affect the taxable income of the ..

  Which option would you prefer and why

Big Al's Pizza Managerial Accounting Part Seven: Using net present value (NPV) analysis compare the present value of the lease payments with the cost of buying the equipment to replace the leased equipment as explained in Part Seven. Assume a 10% ..

  E21-30 determining mixed costs-the high-low method

E21-30 Determing mixed costs-the high-low method The manager of Able Car Inspection reviewed the monthly operating costs for the past year. The costs ranged from $4,000 for 1,000 inspections to $3,600 for 600 inspections.

  Differences between tax and accounting income

Woody Corp. had taxable income of $8,000 in the current year. The amount of MACRS depreciation was $3,000 while the amount of depreciation reported in the income statement was $1,000. Assuming no other differences between tax and accounting income..

  Prepare a revised balance sheet given the available

bruno company has decided to expand its operations. the bookkeeper recently completed the balance sheet presented below

  Set of characteristics of a corporation

A corporation has which of the following set of characteristics? a. Shared control, tax advantages, increased skills and resources b. Simple to set up and maintains control with founder c. Easier to transfer ownership and raise funds, no personal lia..

  What is the break-even sales (units)

If fixed costs are $300,000, the unit selling price is $31, and the unit variable costs are $22, what is the break-even sales (units) if fixed costs are reduced by $30,000?

  An analysis of comparative balance sheets the current years

an analysis of comparative balance sheets the current years income statement and the general ledger accounts of gygi

  Problem related to marginal tax rate

Julio, age 50, is a U.S. citizen who has a 28% marginal tax rate. He has operated the A&B Automotive Parts Company for a number of years as a C corporation.

  When is the termination effective

The corporation issues the stock to Sid on September 13, 2010, to raise additional equity capital. Sid owns no other Orlando stock.a. Does Orlando's S election terminate? If so, when is the termination effective?

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