Susan Hopkins recently went to work for RJ Enterprises as the accounting manager. At the end of

Question:

Susan Hopkins recently went to work for RJ Enterprises as the accounting manager. At the end of the year, Bill Harrison, the CEO, called Susan into his office for a meeting. Mr. Harrison explained to Susan that RJ Enterprises was in the midst of obtaining a substantial investment of cash by a major investor. Mr. Harrison said he was concerned that the investor would decide not to invest in RJ Enterprises when it saw the current year's results of operations. Mr. Harrison then asked Susan to revise the current year's by increasing the value of the in order to decrease cost of goods sold and increase net income. Mr. Harrison tried to reassure Susan by explaining that the company is undertaking a new advertising campaign that will result in a significant improvement in the company's income in the following year. Susan is concerned about the future of her job, as well as others within the company, if the company does not receive the investment of cash.
Requirements
1. What would you do if you were in Susan's position?
2. If Susan increases the value of the current year's , what will be the effect on the following year's net income?
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... 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...