NEW Q3. Wintz Publishing House produces consumer magazines. The House and Home Division, which sells home-improvement and home-decorating magazines has seen a 20% reduction in operating income over the past 9 months, primarily due to an economic recession and a depressed consumer housing market. The division's controller, Happy Franklin, has felt pressure from the CFO to improve her division's operating results by the end of the year. Franklin is considering the following options for improving the division's performance by year-end:a.Cancelling two of the division's least profitable magazines, resulting in the layoff of 25 employees.b.Selling the new printing equipment that was purchased in January and replacing it with discarded equipment from one of the company's other divisions. The previously discarded equipment no longer meets current safety standards.c.Recognizing unearned subscription revenue (cash received in advance for magazines that will be delivered in the future) as revenue when cash is received in the current month (just before fiscal year-end) instead of showing it as a liability. d.Reducing the division's Allowance for Bad Debt Expense. This transaction alone would increase operating income by 5%.e. Recognizing advertising revenues that relate to January in December, which of the forgoing "year-end" actions should be viewed as unacceptable because of their potential harm to employee?(2 point) Option b Option c option d option e SLO 3: Student is able to identify alternative courses of action/solutions regarding an ethical dilemma NEW Q1. According to the IMA Standards of Ethical Conduct, if there is an ethical conflict concerning your direct supervisor, you may contact (1 point) local media IMA Ethics Counselor an attorney board of directors NEW Q2. If there is an ethical conflict concerning your direct supervisor, when is it appropriate to contact authorities or individuals not employed by the organization? (1 point) when there is when your supervisor is about to be promoted when there is a clear violation of the law when you face injustice from your supervisor a personal conflict NEW Q3. If a managerial accountant suspected his or her immediate superior of unethical behavior, who happens to be a chief executive officer or equivalent, the managerial accountant should request an immediate meeting with the executive committee or the audit committee. (1 point) TRUE FALSE NEW Q4. Sheila is a managerial accountant who has discovered that her company is violating environmental regulations of a third world country in its production of Q4. Sheila is a managerial accountant who has discovered that her company is violating environmental regulations of a third world country in its production of rubber at a plant in that country. Upper management is unaware of the violation, but her immediate superior is involved. Sheila has discussed this issue with her supervisor, and the supervisor has advised her to remain quiet about the matter.Sheila knows she should do something. What should she do? (1 point) A.Alert the press even if it means the company will fire her afterwards. B.Present the matter to the next higher managerial level. .write a letter to the Chief Executive Office of the company. D.Consult the board of directors. E.None of the above explain the correct course of action for her NEW Q5. Which of the following actions should a management accountant take first in confronting a potential ethical conflict concerming your direct supervisor? (1 point) A.Inform the Board of Directors of the existence of a potential conflict. B.Clarify relevant ethical issues by initiating a confidential discussion with an IMA Ethics C. Consult the attorney as to legal obligations and rights concerning the ethical conflict. D.Follow the organization's procedures concerning resolution of such a conflict. SLO 4: Student us able to evaluate both immediate and long-term risks/consequences of alternative courses of action NEW Q1. Mark Johnson is controller for a Phamaceutical company. During the company's midyear review, Johnson notes that the company's Research and Development expenditures are already $3.0 billion, nearly 40% above the midyear target-In a meeting with the CFO later that day, Johnsons delivers the bad news to the CFO, Pauline Stewart. Stewart was shocked and outraged that the R&D spending had gotten out of control. Stewart wasn't any more understanding when Johnson revealed that the excess cost was entirely related to research and development of a new drug, Lucexx, which was expected to go to market next year. The new drug would result in large profits for the company, if the product could be approved by year-end. Johnson came up with the following idea for making the third-quarter budgeted targets:Stop all research and development expense on the drug Lucexx until after year-end. This change would delay the drug going to market by at least 6 months. It is certain that in the meantime a competitor could make it to market with a similar drug. The results on the company of this action is: (2.5 point) A.An increase in both short-term and long-term profits B.An increase in short-term profits and a decrease in long-term profits C.A decrease in short-term profits and an increase in long term profits D.A decrease in both short-term and long-term profits NEW Q2. Mark Johnson is controller for a Phamaceutical company. During the company's midyear review, Johnson notes that the company's R&D expenditures are already $3.0 billion, nearly 40% above the midyear target. In a meeting with the CFO later that day, Johnsons delivers the bad news to the CFO, Pauline Stewart. Stewart was shocked and outraged that the R&D spending had gotten out of control. Stewart wasn't any more understanding when Johnson revealed that the excess cost was entirely related to research and development of a new drug, Lucexx, which was expected to go to market next year. The new drug would result in large profits for the company, if the product could be approved by year-end. Johnson came up with the following ideas for making the third- quarter budgeted targets:Sell off rights to the drug, Martek. The company had not planned on doing this because, under current market conditions, it would get less than fair value. It would, however, result in a onetime revenue that could offset the budget shortfall. The patent on Martek is about to expire, after which any competitor can make the drug. On balance, the results on the company of this action are:(2.5 point) A.An overall positive effect on short-term profits, while not affecting expected long-term profits B.An overall negative effect on short-term profits, while not affecting expected long-term profits C.An overall positive effect on short-term profits, while diminishing expected long-term profits D.No predictable effect on short-term profits