Legal and Ethical Issues of Financial Reporting Roberta Barker ETH/376 May 19, 2014 Sam Hinton Legal and Ethical Issues of Financial Reporting Case 7-4 Excello Telecommunications Excello Telecommunications has been a profitable enterprise for a number of years, but has faced a recent increase in competition for their products by overseas manufactures. Now for the first time in its history, it has become evident they will not be able to meet their earnings estimates, which is a concern to top management on how it will affect bonuses, stock options and share price of company stock. CFO Terry Reed discovers a December 20, 2010 $1.2 million transaction with the potential to solve the problem. This transaction would typically be recorded at time of shipment. Unfortunately in this case the customer Data Equipment Systems is unable to receive shipment until January 11, 2011 due to a lack of available warehouse space (Mintz & Morris, 2011).
Kudler Fine Foods is a company that prides itself on offering the customer with the highest quality organic and rare food items from around the world. Their unmatched quality, customer service, and shopping experience is what separates them from the competition. Kudler Fine Foods cannot change the market structure they operate in, but they can use more effective strategies than their
They needed the support of the manufacturing company to have the town survive. Our Government needs to be more involved with helping the American businesses by using trade agreements and import quotas similar to the ones that Ronald Regan imposed. Regan imposed temporary quotas on some Japanese goods, trying to give American manufactures the time to compete with the reliability and efficiency of the cars arriving from Japan. However, the plan did not work as Regan had hoped it would. The Japanese opened factories in the United States.
America began on small businesses and America has to continue to have small businesses to have a good economy. Wal-Mart endangers businesses all over the country because small businesses cannot compete with the superpower on account of Wal-Mart getting goods from places like China. Most people live within thirty minutes of a Wal-Mart and with their lower prices people will continue to shop there without realizing what they are doing to their own economy. Most people don’t realize that saving a few dollars by shopping at Wal-Mart is crippling all the local businesses around their area. Wal-Mart does not care about the American economy because they are thriving the way the economy is now, so American citizens have to stand up for their communities.
Being a privately held company, Le Petit Chef is not subjected to the same kind of investor pressure as e.g. P&G does but, nonetheless, making money most likely remains the owners’ main objective. However, the company is experiencing difficulties releasing products that differentiate it from the competition despite their comparatively high investment in R&D. The current innovation process is not delivering product “winners” like it did in the past. 2 Market and Competition The market of microwave ovens has become a global market with Europe, Japan and the USA being the largest market regions.
The economy in which the read-mix industry operates may have a potential slowdown. Despite Alliance’s success and potential growth, the company is facing with a difficult decision to choose between renegotiating debt obligations, postponing long overdue capital improvement, or reducing the dividend payment to National. Being a ready-mix concrete company, Alliance’s obligation is to have their product deliver to the customers on time. However, the main issue of Alliance Concrete is the negligent to upgrade their old equipment which cost the company $2.6 million and two-week shutdown. Thus, Alliance needs to focus on improving operating efficiencies by investing in capital improvement.
Capital Budget Recommendation Guillermo Furniture, based in Sonora, Mexico, specializes in handcrafted quality products. In the late 1990s Guillermo’s profits started to shrink because of increased competition and rising costs. Guillermo does not consider merging with a larger competitor a viable option, as this would take away time spent with his family. Confronted with business options that affect the future of the company, Guillermo Furniture must choose between upgrading to a high-tech computer controlled laser lathe and becoming more of a distribution network than a manufacturing company for a competitor (University of Phoenix, 2013). Capital budget techniques assists in recommending a course of action for Guillermo Furniture based on the presented data.
His tasked is to select the desired suppliers that would supply Hexonic Acid to the company. Selecting a reliable and dependable supplier is not an easy task for Brent especially Hexonic Acid is a major raw material in most Loren products. The company’s requirements to this raw material had grown steadily over the years and were expected to remain significant in the years to come. The problem here is that the availability of this material in the marketplace was difficult to predict. There had been shortages of this material two years previously due to European and Japanese demand.
FJR has discussed the research with management and highly recommends that they do not open any new locations until further research has been done in other areas. It is very expensive and time consuming opening new locations and Kudler does not have the financial means to do so just yet. What Kudler Fine Foods needs to focus their attention on is other competitor in the market. They can offer coupons or special promotions towards maybe the first of the month which will attract consumers into purchasing more products because most consumers get paid at that time. Kudler will also advertise to the Asian community by having advertisements in their language.
According to Bill Myers Online, Americans spend more money on fast food than on new cars, college education and software because fast food is so convenient. Fast food restaurants are easy to find in cities and towns across America. They offer quick meals for busy lifestyles that are so quick and convenient, you don't even have to get out of your car to get them. An article in "USA Today" points out that many fast food places aim to have customers wait less than a minute. Another advantage of fast food is that it is very inexpensive, notes MSN Money.