This is an implausible trend on the Balance sheet that BDO should have investigated further, especially with Leslie Fay’s outstanding Income Statement. 2.) First of all I would want to investigate vendor and customer accounts to reconcile payable and receivable amounts. Also, I would obtain bank statements and other lines of credit since the long term debt to equity ratio shows the company being highly leveraged.
Ethical Issues in Business - Objective 310.2.1-05 Evaluation It is clear that Company Q has protected its shareholders investments as well as the company’s profits by closing failing stores in high-crime areas which were consistently losing money. However, there are many areas in which Company Q has not lived up to their ethical duty to be social responsible, by failing to have a positive effect and not making attempts to decrease their negative effect on society. The lack of response to consistent customer requests for more healthconscience and organic products demonstrated a complete disinterest in their community’s health, customer satisfaction, and consequently return business. Lack of return business creates revenue loss, and affects both the business and the shareholders. When the requested products were finally available in the stores, the prices of the products were very high and the product variety was extremely limited.
In the event that the sales increase, the organization will create additional working capital, and can undoubtedly accomplish its yearly objectives. As stated by the organization's profit and loss statement, the organization must control its overhead costs and lessen its selling expenditures. After forecasting the five years sales there is an increase in sales from 15%, 10%, 25% and 50%. The gross profit will also increase every year from $697,428 to
SOX also sought to strengthen consumer and investor confidence and confidence in financial information by changing the auditing procedure and making management more accountable for fraud prevention, catching, and existence within the pot. Lastly, it shielded whistleblowers from corporate retribution and endowed them with protecting freedoms. Based on aforementioned information, I would like to consider the implementation of SOX would have been an immediate check to financial statement fraud in its initial launch in 2002; unfortunately, there will invariably be somebody who believes she is above reproach and disregards societal measures of intellect, decency and control to pursue her own
Most owners of a chain stores are said to be only interested in a making a profit instead of supporting the local community. By closing this store, the social responsibility has not been met, because it would increase the unemployment rate in the community, leading to more crimes. A growing number of consumers are becoming more aware of the products they buy, but also how the goods and services they buy have been produced. Consumers are concerned about human rights, environmentally harmful production and animal welfare issues that revolve around products they purchase. Customers are prepared to buy products from companies that have retailers who act ethically and socially responsible when purchasing products to sell in their stores.
Over-production – Fewer products such as cars, consumer good etc were not being sold as factories were making more goods than Americans needed or could afford to buy. As the number of sells went down, the prices of goods also went down which meant that wages had to be kept low. When this did not work, industrialists had to resort to sacking workers, and because the workers did not have any more money, they could not afford luxury so factories continued to
The legislation establishing the payroll tax reduction also provided for transfers of revenues from the general fund to the trust funds in order to "replicate to the extent possible" payments that would have occurred if the payroll tax reduction had not been enacted. Those general fund reimbursements comprise about 15 percent of the program's non-interest income in 2011 and 2012. Under current projections, the annual cost of Social Security benefits expressed as a share of workers’ taxable earnings will grow rapidly from 11.3 percent in 2007, the last pre-recession year, to roughly 17.4 percent in 2035, and will then decline slightly before slowly increasing after 2050. Costs display a slightly different pattern when expressed as a share of GDP. Program costs equaled 4.2 percent of GDP in 2007, and the Trustees project these costs will increase gradually to 6.4 percent of GDP in 2035 before declining to about 6.1 percent of GDP by 2050 and then remaining at about that
When comparing financial ratios of the time period of 2008-2009, a percent of change in current assets of 44% which was a dramatic increase from 2008. In the attached balance sheet, it is very evident of the shift in assets. When looking at the liabilities, there is a negative percent of change, which could cause issues in the near future for the company. Urban Outfitters net revenue grew 14% from 2008 to 2009 which was a significant impact on their bottom line. No matter what, it is always positive to show growth, and in this case, Urban Outfitters is a very large company and when comparing that growth to their competitors, it needed be higher to maintain their position in the market.
Although the Sarbanes-Oxley Act was passed by Congress for positive reasons, there are many disadvantages that come along with it. A major issue is the cost of regulation, especially for smaller companies. Expanding internal controls delay the timeliness of financial statements by adding processing time to accounting functions. To follow the SOX, companies would need to separate duties, causing an increase in personnel. The SOX also calls for additional audits which increase business costs.
Steelcase management was not used to additional requests for information so they held a defensive posture towards inquisitive analysts and investors. This approach was not the best idea especially when it came to concerns that arise when they purchased Strafor. This lack of communication contributed to the approximately seventy (70) percent drop in their stock price and with not having a relationship with sell-side analyst it did not make the situation better. Not understanding how Strafor runs its operations and how it will impact on the operations of their company is what contributed to the weakening of their profits. When the company became public they did not take into consideration the necessary changes they would have to make in pertaining to their major constituents.