One of the significant differences between financial and managerial accounting is that managerial accounting may be more subjective and does not need to follow Generally Accepted Accounting Principles. But that doesn't mean that managerial accountants can just make up numbers to support their preferred results. Managerial accountants should strive to prepare financial projections that are based upon reasonable assumptions, honestly correspond with actual business activities, and avoid conflicts of interest. Managers, investors, creditors, and others rely upon financial projections to make decisions and managerial accountants are responsible to provide the best estimates possible with the information available. But financial projections are still just estimates of the future, and circumstances change over time. What responsibility do managerial accountants have when they become aware of significant changes in their financial projections? In this discussion, you will read the short case study below and answer the three questions at the end of the case. You will also reply to other students' posts by assuming the role of an outside stakeholder (investor or creditor) and explaining how the erroneous financial projections would affect you. The case study is below: Since graduating two years ago, you have been working as a financial analyst in the budgetary and financial projections unit of Greenworks Technology, a company that makes biogradable electrical components. The company is ready to launch some highly anticipated new products and the CEO, Marie Callendar, will be making several presentations to potential investors as part of the product launch. The CEO hopes this will boost stock sales and price for Greenworks. You were only given two days to prepare financial projections for sales and income for the next eight quarters that will be included in the investor presentations. After working overtime, you deliver the projections to the CEO just as she is leaving for the airport to begin the investor road show. She thanks you and hurries out the door. Five days later, you are reviewing your computations and find a miscalculation that grossly overstates income. You check the CEO's schedule and find she has already made half of the presentations and will finish the other half over the next three days. You are in a dilemma as to what to do. Instructions: a. Answer the following three questions: 1. What are the consequences of telling the CEO about the error? 2. What are the consequences of not telling the CEO about the error? 3. What are the ethical considerations to you and the president in this situation? b. Respond to two of your classmates' postings by assuming the role of an outside stakeholder investor or creditor) and explain how the erroneous projections would affect you. One of the significant differences between financial and managerial accounting is that managerial accounting may be more subjective and does not need to follow Generally Accepted Accounting Principles. But that doesn't mean that managerial accountants can just make up numbers to support their preferred results. Managerial accountants should strive to prepare financial projections that are based upon reasonable assumptions, honestly correspond with actual business activities, and avoid conflicts of interest. Managers, investors, creditors, and others rely upon financial projections to make decisions and managerial accountants are responsible to provide the best estimates possible with the information available. But financial projections are still just estimates of the future, and circumstances change over time. What responsibility do managerial accountants have when they become aware of significant changes in their financial projections? In this discussion, you will read the short case study below and answer the three questions at the end of the case. You will also reply to other students' posts by assuming the role of an outside stakeholder (investor or creditor) and explaining how the erroneous financial projections would affect you. The case study is below: Since graduating two years ago, you have been working as a financial analyst in the budgetary and financial projections unit of Greenworks Technology, a company that makes biogradable electrical components. The company is ready to launch some highly anticipated new products and the CEO, Marie Callendar, will be making several presentations to potential investors as part of the product launch. The CEO hopes this will boost stock sales and price for Greenworks. You were only given two days to prepare financial projections for sales and income for the next eight quarters that will be included in the investor presentations. After working overtime, you deliver the projections to the CEO just as she is leaving for the airport to begin the investor road show. She thanks you and hurries out the door. Five days later, you are reviewing your computations and find a miscalculation that grossly overstates income. You check the CEO's schedule and find she has already made half of the presentations and will finish the other half over the next three days. You are in a dilemma as to what to do. Instructions: a. Answer the following three questions: 1. What are the consequences of telling the CEO about the error? 2. What are the consequences of not telling the CEO about the error? 3. What are the ethical considerations to you and the president in this situation? b. Respond to two of your classmates' postings by assuming the role of an outside stakeholder investor or creditor) and explain how the erroneous projections would affect you