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An email message: As you know, the company has had a very profitable quarter, and management has decided to accrue a liability previously disclosed concerning
An email message: As you know, the company has had a very profitable quarter, and management has decided to accrue a liability previously disclosed concerning a hazardous waste site cleanup. I need to provide financial accounting with an accrual amount for the quarters financial reporting. Management has decided to accrue at the lower range of the 68% confidence interval and has asked me to provide the dollar amount. Im giving you this assignment. Heres what you need to know: Environmental Engineering has provided the following cleanup forecast with probabilities in parentheses (in thousands of dollars): Low estimate $15,000 (0.20) Most likely $20,000 (0.70) High estimate $25,000 (0.10) Heres what I need from you: Provide the accrual amount for the quarterly 10Q statement. Submit your analysis in my drop box by the date to be specified
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