Maurice Tutor

(5)

$15/per page/Negotiable

About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 399 Weeks Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 19 Aug 2017 My Price 11.00

Ryan Company

C17-10 Ethics and EPS Adjustment Ryan Company has as a goal that its earnings per share should increase by at least 3% each year; this goal has been attained every year over

the past decade. As a result, the market price per share of Ryan’s common stock also has increased each year. Last year (2006) Ryan’s earnings per share was $3. This year, however, is a different story. Because of decreasing sales, preliminary computations at the end of 2007 show that earnings per share will be only $2.99 per share.

You are the accountant for Ryan Company. Ryan’s con- troller, Jim Nastic, has come to you with some suggestions. He says, “I’ve noticed that the decrease in revenues has been primarily related to credit sales. Since we have fewer credit sales, I believe we are justified in reducing our bad debts expense from 4 to 2% of net sales. I also think that because of the decreased sales, we won’t use our factory equipment as much, so we can extend its estimated remaining life from 10 to 15 years for computing our straight-line depreciation expense. Based on my calculations, if we make  these changes, Ryan  Company’s 2007  earnings per share will     be $3.06. This will sure make our stockholders happy, not to mention our CEO. You may even get a promotion. What do you think?”

 

Required

From financial reporting and ethical perspectives, prepare a response to Jim Nastic regarding his suggestions.

Answers

Maurice Tutor
(5)
Status NEW Posted 19 Aug 2017 07:08 PM My Price 11.00

Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------and----------- ac-----------qui-----------sit-----------ion----------- of----------- my----------- po-----------ste-----------d s-----------olu-----------tio-----------n.P-----------lea-----------se -----------pin-----------g m-----------e o-----------n c-----------hat----------- I -----------am -----------onl-----------ine----------- or----------- in-----------box----------- me----------- a -----------mes-----------sag-----------e I----------- wi-----------ll

Not Rated(0)
Relevent Questions