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Meltdown Incorporated Co - authored with Stephanie McGarry Laurentian University Meltdown Incorporated ( MI ) recycles plastic and then sells it to manufacturing companies to
Meltdown Incorporated
Coauthored with
Stephanie McGarry
Laurentian University
Meltdown Incorporated MI recycles plastic and then sells it to manufacturing companies to produce toys, household
items such as coffee makers and so on MI was founded in by Samuel Abdesselam. Sam has maintained full
ownership of MI deciding not to take it public when so many other recycling companies were going public. While
Sam is the only shareholder, MI does have a substantial bank loan and the bank requires an annual audit of MIs
financial statements and MI follows ASPE. Sam has a background in operations, but is also very strong in accounting.
It is now early and you are the controller for MI having been hired just days before the December
year end. In October Sam decided to step away from the business and spend more time at his second home in
Florida. In order to ensure there was someone at the MI facility to oversee production and daytoday operations, Sam
hired a chief operating officer, Fred Finklestein. Freds background is sales and operations and he has limited knowledge of accounting. Fred tried to run the accounting side of MI when he was hired, but determined that it wasnt his
area of strength. He received Sams permission to hire you to help him with accounting for some of the activities in
preparation for year end, and to help him understand the accounting function better.
Required
Sam has some very specific activities for you and has provided you with the information he requires in Exhibit I.
Prepare a report to Sam that answers his questions and be sure to provide him with all the necessary backup and calculations to support your discussion.
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