The board of directors of Company R tested two stores that were remodeled. P is the assistant controller who was supposed to make the financial report for these stores and the management offered bonuses according to the sales volume and profits of the company. When P completes the financial report, she found obsolete goods. These obsolete goods were required to return to the manufacturer but when she discussed this matter with the management team then she ignores these outdated goods by agreeing with the team because it can diminish her and the team’s bonuses. Whether it would be ethical for P not to report the inventory as obsolete according to the IMA’s statement of ethical professional practice.

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Answer 1

Question

Chapter P, Problem P.4E

1.

To determine

Case summary: The board of directors of Company R tested two stores that were remodeled. P is the assistant controller who was supposed to make the financial report for these stores and the management offered bonuses according to the sales volume and profits of the company. When P completes the financial report, she found obsolete goods. These obsolete goods were required to return to the manufacturer but when she discussed this matter with the management team then she ignores these outdated goods by agreeing with the team because it can diminish her and the team’s bonuses.

Whether it would be ethical for P not to report the inventory as obsolete according to the IMA’s statement of ethical professional practice.

2.

To determine

Case summary: The board of directors of Company R tested two stores that were remodeled. P is the assistant controller who was supposed to make the financial report for these stores and the management offered bonuses according to the sales volume and profits of the company. When P completes the financial report, she found obsolete goods. These obsolete goods were required to return to the manufacturer but when she discussed this matter with the management team then she ignores these outdated goods by agreeing with the team because it can diminish her and the team’s bonuses.

Whether it would be easy for P to take ethical action.

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$ 36,000 204,000 The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets Liabilities Drysdale, loan $ 50,000 10,000 Total assets $ 240,000 Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) Total liabilities and capital 70,000 60,000 50,000 $ 240,000 Required: a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $15,000. Prepare a predistribution schedule to guide the distribution of cash. b. Assume that assets costing $74,000 are sold for $60,000. How is the available cash to be divided? Complete this question by entering your answers in the tabs below.

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Answer 2

Question

Chapter P, Problem P.4E

1.

To determine

Case summary: The board of directors of Company R tested two stores that were remodeled. P is the assistant controller who was supposed to make the financial report for these stores and the management offered bonuses according to the sales volume and profits of the company. When P completes the financial report, she found obsolete goods. These obsolete goods were required to return to the manufacturer but when she discussed this matter with the management team then she ignores these outdated goods by agreeing with the team because it can diminish her and the team’s bonuses.

Whether it would be ethical for P not to report the inventory as obsolete according to the IMA’s statement of ethical professional practice.

2.

To determine

Case summary: The board of directors of Company R tested two stores that were remodeled. P is the assistant controller who was supposed to make the financial report for these stores and the management offered bonuses according to the sales volume and profits of the company. When P completes the financial report, she found obsolete goods. These obsolete goods were required to return to the manufacturer but when she discussed this matter with the management team then she ignores these outdated goods by agreeing with the team because it can diminish her and the team’s bonuses.

Whether it would be easy for P to take ethical action.

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Answer 3

Question

Chapter P, Problem P.4E

1.

To determine

Case summary: The board of directors of Company R tested two stores that were remodeled. P is the assistant controller who was supposed to make the financial report for these stores and the management offered bonuses according to the sales volume and profits of the company. When P completes the financial report, she found obsolete goods. These obsolete goods were required to return to the manufacturer but when she discussed this matter with the management team then she ignores these outdated goods by agreeing with the team because it can diminish her and the team’s bonuses.

Whether it would be ethical for P not to report the inventory as obsolete according to the IMA’s statement of ethical professional practice.

2.

To determine

Case summary: The board of directors of Company R tested two stores that were remodeled. P is the assistant controller who was supposed to make the financial report for these stores and the management offered bonuses according to the sales volume and profits of the company. When P completes the financial report, she found obsolete goods. These obsolete goods were required to return to the manufacturer but when she discussed this matter with the management team then she ignores these outdated goods by agreeing with the team because it can diminish her and the team’s bonuses.

Whether it would be easy for P to take ethical action.

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Answer 4

Question

Chapter P, Problem P.4E

1.

To determine

Case summary: The board of directors of Company R tested two stores that were remodeled. P is the assistant controller who was supposed to make the financial report for these stores and the management offered bonuses according to the sales volume and profits of the company. When P completes the financial report, she found obsolete goods. These obsolete goods were required to return to the manufacturer but when she discussed this matter with the management team then she ignores these outdated goods by agreeing with the team because it can diminish her and the team’s bonuses.

Whether it would be ethical for P not to report the inventory as obsolete according to the IMA’s statement of ethical professional practice.

2.

To determine

Case summary: The board of directors of Company R tested two stores that were remodeled. P is the assistant controller who was supposed to make the financial report for these stores and the management offered bonuses according to the sales volume and profits of the company. When P completes the financial report, she found obsolete goods. These obsolete goods were required to return to the manufacturer but when she discussed this matter with the management team then she ignores these outdated goods by agreeing with the team because it can diminish her and the team’s bonuses.

Whether it would be easy for P to take ethical action.

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Answer 5

Chapter P, Problem P.4E

1.

To determine

Case summary: The board of directors of Company R tested two stores that were remodeled. P is the assistant controller who was supposed to make the financial report for these stores and the management offered bonuses according to the sales volume and profits of the company. When P completes the financial report, she found obsolete goods. These obsolete goods were required to return to the manufacturer but when she discussed this matter with the management team then she ignores these outdated goods by agreeing with the team because it can diminish her and the team’s bonuses.

Whether it would be ethical for P not to report the inventory as obsolete according to the IMA’s statement of ethical professional practice.

2.

To determine

Case summary: The board of directors of Company R tested two stores that were remodeled. P is the assistant controller who was supposed to make the financial report for these stores and the management offered bonuses according to the sales volume and profits of the company. When P completes the financial report, she found obsolete goods. These obsolete goods were required to return to the manufacturer but when she discussed this matter with the management team then she ignores these outdated goods by agreeing with the team because it can diminish her and the team’s bonuses.

Whether it would be easy for P to take ethical action.

Answer 6

Chapter P, Problem P.4E

1.

To determine

Case summary: The board of directors of Company R tested two stores that were remodeled. P is the assistant controller who was supposed to make the financial report for these stores and the management offered bonuses according to the sales volume and profits of the company. When P completes the financial report, she found obsolete goods. These obsolete goods were required to return to the manufacturer but when she discussed this matter with the management team then she ignores these outdated goods by agreeing with the team because it can diminish her and the team’s bonuses.

Whether it would be ethical for P not to report the inventory as obsolete according to the IMA’s statement of ethical professional practice.

Answer 7

Chapter P, Problem P.4E

1.

To determine

Case summary: The board of directors of Company R tested two stores that were remodeled. P is the assistant controller who was supposed to make the financial report for these stores and the management offered bonuses according to the sales volume and profits of the company. When P completes the financial report, she found obsolete goods. These obsolete goods were required to return to the manufacturer but when she discussed this matter with the management team then she ignores these outdated goods by agreeing with the team because it can diminish her and the team’s bonuses.

Whether it would be ethical for P not to report the inventory as obsolete according to the IMA’s statement of ethical professional practice.

Answer 8

2.

To determine

Case summary: The board of directors of Company R tested two stores that were remodeled. P is the assistant controller who was supposed to make the financial report for these stores and the management offered bonuses according to the sales volume and profits of the company. When P completes the financial report, she found obsolete goods. These obsolete goods were required to return to the manufacturer but when she discussed this matter with the management team then she ignores these outdated goods by agreeing with the team because it can diminish her and the team’s bonuses.

Whether it would be easy for P to take ethical action.

Answer 9

2.

To determine

Case summary: The board of directors of Company R tested two stores that were remodeled. P is the assistant controller who was supposed to make the financial report for these stores and the management offered bonuses according to the sales volume and profits of the company. When P completes the financial report, she found obsolete goods. These obsolete goods were required to return to the manufacturer but when she discussed this matter with the management team then she ignores these outdated goods by agreeing with the team because it can diminish her and the team’s bonuses.

Whether it would be easy for P to take ethical action.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. P - Prob. P.1Q Ch. P - Pick any major television network and describe...Ch. P - If you had to decide whether to continue making a...Ch. P - Why do companies prepare budgets?Ch. P - Prob. P.5Q Ch. P - Why is managerial accounting relevant to...Ch. P - Prob. P.7Q Ch. P - Why do management accountants need to understand...Ch. P - Prob. P.9Q Ch. P - Pick three industries and describe how the risks...

Solution Summary: The author analyzes the ethical principles of the IMA's statement of ethical professional practice, which includes competence, confidentiality, integrity, and credibility.

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