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i have an assingment and i dont know how to solve it . so the question is based on this ethical case study wich is
i have an assingment and i dont know how to solve it . so the question is based on this ethical case study wich is the controller of Diaz Co. believes that the yearly allowance for doubtful accounts for Diaz Co. should be 2% of net credit sales. The president of Diaz Co. nervous that the owners might expect the company to sustain its 10% growth rate, suggest that the controller increase the allowance for doubtful accounts to4%.The president thinks that the lower net income, which reflects to 6% growth rate, will be a more sustainable rate for Diaz Co the answe for this case study in the secound pic but how can i solve my assingment? pleassse helppp guysss
You have learned in the course that ethical conduct is essential in the business world as it is in every aspect of our lives. As ethics could be defined as the standards of conduct by which actions are judged as right or wrong, people tend to have varying interpretations for ethically debatable situations. In this assignment, you will choose an ethical case (found below) and answer its related questions following the steps needed to analyse ethical cases presented in your book. You are required to prepare a presentation that include the following: The ethical situation and the issues involved The identification of the affected stakeholders and their responsibilities. The identification of alternatives and their impacts on various stakeholders. Part-1) Who are stakeholders in this case? Answer: The stakeholders in this case are President of Diaz Co., Controller of Diaz Co., Stockholders and any other party who has interest in the company's financial statements such as an investor or banker looking to lend money Part-2) Does the President's request pose an ethical dilemma for the controller? Answer: Yes, President's request pose an ethical dilemma for the controller. Because of the misleading financial statements (understated net income) per the president's suggestion, the controller faces an ethical dilemma. In my opinion, to protect the interests of the company and also to not mislead stakeholders by reflecting an incorrect net income the controller should remain ethical. Companies must accurately report net income which in turn affects the growth rate percentage. Net-income growth provides a perfect picture of the rate at which companies have grown their profits. All things being equal, stocks with higher net-income growth rates are often more desirable than those with slower net-income growth rates Part-3) Should the controller be concerned with Diaz Co's growth rate. Explain your answer Answer: Yes, the controller should be concerned about Diaz Co.'s growth rate as the growth rate must be based on fair and accurate financial statements. The controller should not prepare financial statements per the president's objective of achieving or sustaining a predetermined growth rate. The growth rate of Diaz Co's should be based on management and operating results and not because of manipulated accounting Step by Step Solution
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