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C9.5 Ethical Dilemma Making the ratios look good J. Talbot is the accounting manager for Kolla Waste Disposal Corporation. Kolla is having its wors financial
C9.5 Ethical Dilemma Making the ratios look good J. Talbot is the accounting manager for Kolla Waste Disposal Corporation. Kolla is having its wors financial year since its inception. The company is expected to report a net loss. In the midst of such bac news, Ms. Talbot surprised the company president, Mr. Winston, by suggesting that the company write off approximately 25 percent of its garbage trucks. Mr. Winston responded by noting that the trucks could still be operated for another two or three years. Ms. Talbot replied, "We may use them for two or three more years, but you couldn't sell them on the street if you had to. Who wants to buy a bunch of old garbage t aditional write-off this year. We are already showing a loss, Who will care if we lose a little bit more?" Required rucks, and besides, it will make next year's financials so sweet. No one will care about the a. How will the write-off affect the following year's return on assets ratio? b. How will the write-off affect the asset and income growth percentages? . Would writing off the garbage trucks violate any of the standards of ethical professional practice shown in Exhibit 4.4 of Chapter 4? lain how the components of the fraud triangle relate to this case
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