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Instructions
Begin by thoroughly reading the four cases below. Once you have a firm grasp on each of the scenarios, you will author a paper that presents your analysis for each case. This paper should be 4-5 pages long and in APA format. Use an APA heading (i.e. Case 1, Case 2, Case 3, etc.) for each case. At least 3 professional sources must be cited (crowd-sourced sites such as Wikipedia are not considered to be professional and should not be used), and a research page is required. The case study paper will be due at the end of the course in Week 7. For each case below, answer the following three questions: What is the accounting issue in this case? What ethical decision needs to be made? Who are the stakeholders? Analyze the potential impact on the stakeholders from the following standpoints: (a) economic, (b) legal, and (c) ethical. Case 4 Greensboro Golf Corporations long-term debt agreements make certain demands on the business. For example, Greensboro may not purchase treasury stock in excess of the balance of retained earnings. Also, long-term debt may not exceed stockholders equity, and the current ratio may not fall below 1.50. If Greensboro fails to meet any of these requirements, the companys lenders have the authority to take over management of the company. Changes in consumer demand have made it hard for Greensboro to attract customers. The companys current liabilities have grown faster than its current assets, causing the current ratio to fall to 1.47. Before releasing financial statements, managers are scrambling to improve the current ratio. The controller points out that the company owns an investment that is currently classified as long-term. The investment can be classified as either long-term or short-term, depending on managements intention. By deciding to convert an investment to cash within one year, Greensboro can classify the investment as short-terma current asset. On the controllers recommendation, Greensboros board of directors votes to reclassify long-term investments as short-term.

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