Flint Hills Trading Company's most recent financial statements showed dismal performance. There was a net loss of
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Mark Menke, manager of the manufacturing division, sold off old manufacturing equipment. He also reclassified several workers to part-time (30 hours per week) and hired additional temporary workers to take up the slack. This saved the company money, since part-time workers do not have the same insurance and other benefits as full-time workers.
Jeff Jurgens, financial manager, immediately suspended payments on all accounts except those on which interest would accrue. He also instituted aggressive collection procedures.
Required:
1. Were Mark Menke's actions ethical? Explain.
2. Were Jeff Jurgens's actions ethical? Explain.
3. Were the company president's actions ethical? Explain
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
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