1 / 12

Resources unlimited corporation

Resources unlimited corporation. Case Study Presented by Phillip C. Hammonds. Review of History for years 1987-1988. Baseline profits for years 1987-1988 Number of gas accounts in 1990 Number of accounts transferred to hedge fund

drewc
Download Presentation

Resources unlimited corporation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Resources unlimited corporation Case Study Presented by Phillip C. Hammonds

  2. Review of History for years 1987-1988 • Baseline profits for years 1987-1988 • Number of gas accounts in 1990 • Number of accounts transferred to hedge fund • What would have been an appropriate raise for female accountant?

  3. Additional items to review • Corporate senior management style • Accounting practices • Profit structure • Lines of communication

  4. Baseline Profits for Years 1987-1988 in Millions

  5. Statistics on profits • Quarterly profits in millions in order ($33, $132, $157, $267, $289, $321, $342, $349) • Mean = $236.25 • Standard Deviation = $115.43 • Variance = 13,323.64 • Baseline profits had a high variance • Possibly due to accounting practices or other unknown factors

  6. Number of Gas Accounts in 1990 • In 1988 there were 32 gas accounts and 64 oil accounts • 1990 projections - 86 Oil accounts • 1990 projections - ? Gas accounts • Gas accounts should have been 43 total

  7. 1988 total Accounts

  8. Number of accounts transferred to a hedge fund • 500 gas accounts could produce cash flow • Revenue would only last 30 days

  9. Female Accountant’s appropriate compensation • Accountant’s Salaries $50,000, $52,000, $55,000 • Female Accountant Salary was $32,000 • Mean Male Salary = $52,333 • Standard Deviation = $2516 • At 95% of Population or 2 Deviations • Salary should have been $47,000 (rounded to nearest $1000) • A $15,000 raise would have been appropriate

  10. Gender Salary Comparison

  11. Corporate Management Style • Appears that there was limited research • Management should have listened to accountants • Management should have been more transparent to media • CEO failed to display ethics and leadership • CEO deliberately transferred gas accounts to dummy hedge fund

  12. Accounting Practices and Profit Structure • Accountants attempted to identify problem with derivative model • Focus was too concerned about wall street • The attempt was to balance out profits • In reality it did not work • Lines of Communication broke down • Bankruptcy was the result of these failures

More Related