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.
In groups of three or four, make a list of possible reasons that the actual ending inventory might not agree with the ending inventory according to a computer system. Jason Tierro, an inventory Jason Tierro, an inventory clerk at Lexmar Company, is responsible for taking a physical count of the goods on hand at the end of the year. He has been performing this duty for several years. This year, Jason was very busy due to a shortage of personnel at the company, so he decided to just estimate the amount of ending inventory instead of doing an accurate count. He reasoned that he could come very close to the true amount because of his past experience working with inventory.
The internal auditors questioned why the two shipments were done before December 31, since the requested dates were in the following year. The shipments had a total value of $150,000.00. Another concern for the internal auditors was that there was no written agreement with United Thermostatic Controls to accept the early shipments and pay for them before they actually needed the merchandise. The internal auditors also discovered that Frank Campbell put pressure on the accountants to record the shipments to show the sales. Their concerns were discussed with
Linkage of Case to Chapter Material This case focuses on the controversial $165 million in retention bonuses paid to employees of the Financial Products unit of the American International Group (AIG), a behemoth insurance and financial services company. In early 2008, employees in the Financial Products unit were asked to remain with the company through the unit’s shutdown and, essentially, to work themselves out of a job. To entice talented employees to stay and work through the shut-down, a contractual retention bonus plan was instituted. When the bonuses were paid in early 2009, controversy and outrage arose given that AIG was the recipient of a substantial amount of United States government bailout money under its Troubled Assets Relief Program (TARP). Amid this controversy, Edward Liddy, AIG’s CEO, requested the bonus recipients to return half of the bonus amount.
Frank Campbell, Director of Southern Sales Division, has recognized the decrease in sales and desperately seeking to meet sales goals. Because of this pressure, he pushed two orders to be posted in December 2010. The two orders were not to be fulfilled until February 2011. He pressured the accounting department to recognize the sales in December 2010 and to ship out the products to the consumer. This
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). Reed needs to have that revenue recorded on the 2010 end-of-year financial report. Potential legal and ethical issues Reed is considering booking the $1.2 million sale in the December 2010 books and on December 30 approaches controller Marty Fuller to discuss the dilemma. Fuller explains the accounting rules about sales held for future delivery, although Reed understands the rules he
By observing productive and non-productive time a manager can reasses staffing on an hourly, weekly, quarterly, or annual basis, minimizing cost for the facility. With careful management projections can be made for the upcoming years budget. The mananger has a constant struggle to maintain adequate staffing without exceeding his/her staffing budget. (Davis, 2008) The goal should be more creativity and productivity from each employee, and less non-productivity, which amounts to paying employee for time when they are utilizing their time properly. If employees are doing more socializing with other employees and friends on Facebook than their job duties, it can make for much frustration for
This week we learned that companies are required to prepare a statement of cash flows because it gives a more accurate snapshot of the actual cash flow of a company. Financial statements give an overall picture of how much revenue a company is reporting, but high revenue does not guarantee that the company has the ability to pay its bills. The statement of cash flows is a tool designed to help external users make sound economic decisions about the company. The statement of cash flows is divided into three sections: 1) operating activities, 2) investing activities, and financing activities. The operating activities section analyzes the company's flow of cash as it relates to a net loss or net income.
Week 9 Case Analysis Utiliscan’s By: Tenika Carroll Wednesday March 3, 2010 Dr. Kimberly Scanlan Utiliscan has experienced a growth rate in company business. The HR director and the company CEO’s have been having a very hard time trying to find experienced employees and also address the current issues within the Utiliscan. So Paul the current Director of HR has just learned of a new opportunity and has decided to leave the company, but before he left he conducted a survey on some of the employee concerns. Once the survey was completed, Paul was asked to complete a conceptual plan that would address the employees concerns and stay within the companies’ budget. Throughout the case analysis Paul will address each of the employees
Some employees think they are poorly reviewed and denied the opportunity to advance. One area where we have been especially weak is in discussing employees’ performance in face to face meetings between management and employees. The annual review process also creates tension because it is linked to salary bonuses. I would like to call a meeting of the cooperative’s council to discuss how the cooperative could benefit from better job assessment procedures. Please respond by December 7 so that I can make the appropriate arrangements to schedule the meeting following the management meeting in two weeks.