Larry Dundee is the chief executive offi cer of Palmer Electronics. Dundee is an expert engineer but

Question:

Larry Dundee is the chief executive offi cer of Palmer Electronics. Dundee is an expert engineer but a novice in accounting. Dundee asks you, as an accounting student, to explain

(a) the bases for comparison in analyzing Palmer’s fi nancial statements and

(b) the limitations, if any, in fi nancial statement analysis.

Instructions Write a memo to Larry Dundee that explains the basis for comparison and the factors LO15 affecting quality of earnings.

ETHICS CASE

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Hassan Imtiaz

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