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You have recently been employed by a large retail chain that sells men's and women's clothing. One of your tasks is to help prepare financial statements for external distribution. The chain's bank requires quarterly financial statements, and you are currently working on the statements for the three-month period ending March 31, 2020. The bank also requires that the company must continue to show quarterly profits in order to keep the loan status "in good standing". While reviewing the Inventory documents provided by the stocking department, you notice that the company currently uses the LIFO method to account for inventory costs. Because of rising costs for goods, the quarterly financials will now report a net loss. The company's chief financial officer (CFO) has asked you to go back and redo all quarterly inventory transactions so they reflect the use of the FIFO method instead. The CFO explained that "The FIFO method produces higher net income during inflation, so if we can turn those numbers around we won't lose our loan. Plus, if we are in the positive, then we will all receive our bonuses this quarter." Instructions A workplace Ethical Dilemma is one in which your personal values, morals, or ethics come into question based on an act or request from a coworker, boss, organization, etc. To properly evaluation an ethical dilemma, you must utilize the following steps: 1. Identify and summarize the ethical dilemma 2. Identify the stakeholders who may be harmed or benefit from the dilemma 3. Identify multiple alternatives to dealing with the dilemma 4. Consider all the consequences of each alternative from step 3 5. Choose the best course of action For this report, students are to summarize the ethical issue at hand and list at least 5 of the stakeholders affected. They then must list at least 5 or more creative alternatives to the ethical issue, along with consequences for each alternative. Then, students should choose ONE alternative, and give an explanation why they chose that specific alternative over the others, Please support the decision made with information from the course material. Papers need to be 1-2 pages typed in a Word document. You have recently been employed by a large retail chain that sells men's and women's clothing. One of your tasks is to help prepare financial statements for external distribution. The chain's bank requires quarterly financial statements, and you are currently working on the statements for the three-month period ending March 31, 2020. The bank also requires that the company must continue to show quarterly profits in order to keep the loan status "in good standing". While reviewing the Inventory documents provided by the stocking department, you notice that the company currently uses the LIFO method to account for inventory costs. Because of rising costs for goods, the quarterly financials will now report a net loss. The company's chief financial officer (CFO) has asked you to go back and redo all quarterly inventory transactions so they reflect the use of the FIFO method instead. The CFO explained that "The FIFO method produces higher net income during inflation, so if we can turn those numbers around we won't lose our loan. Plus, if we are in the positive, then we will all receive our bonuses this quarter." Instructions A workplace Ethical Dilemma is one in which your personal values, morals, or ethics come into question based on an act or request from a coworker, boss, organization, etc. To properly evaluation an ethical dilemma, you must utilize the following steps: 1. Identify and summarize the ethical dilemma 2. Identify the stakeholders who may be harmed or benefit from the dilemma 3. Identify multiple alternatives to dealing with the dilemma 4. Consider all the consequences of each alternative from step 3 5. Choose the best course of action For this report, students are to summarize the ethical issue at hand and list at least 5 of the stakeholders affected. They then must list at least 5 or more creative alternatives to the ethical issue, along with consequences for each alternative. Then, students should choose ONE alternative, and give an explanation why they chose that specific alternative over the others, Please support the decision made with information from the course material. Papers need to be 1-2 pages typed in a Word document.
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Solution Answer 1 The ethical dilemma here is that the CFO is asking to change the inventory writing ... View the full answer
Related Book For
Basic Marketing Research
ISBN: 978-1133188544
8th edition
Authors: Tom J. Brown, Tracy A. Suter, Gilbert A. Churchill
Posted Date:
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