You are hired as a corporate accountant for Ryco In-dustries, Inc., a public company with shares traded on the New York Stock Exchange. The company has enjoyed consistently higher earnings each quarter, meeting or exceeding the expectations of Wall Street analysts every quarter for the past seven years. Soon after being hired, you discover a “reserve” account in the accounting records. Your inquiry shows that the account is designed to accumulate earnings defi ciencies or excesses, that is, to permit Ryco to adjust its earnings each quarter such that earnings not increase too little or too much. You bring your fi ndings to theattention of Ryco’s chief accounting offi cer, who tellsyou that the account merely allows Ryco to smooth or manage its earnings, something that Wall Street ana-lysts want to see. If earnings fl uctuated, she explains,analysts would make less optimistic estimates about the prospects of Ryco, and its stock price would take a hit. The CAO tells you, “Look, we’re jus01.08.16 06:38Complete Problem 10 on page 129 (Chapter 4) of the textbook. Post your completed response to the case in the main forum. The completed case should be approximately 400-500 words. Support your positions and provide citations for all outside sources used to develop and defend your position. To participate in follow-up discussion, ask questions or comment upon post by your classmates, respond to questions to your post, and respond to subsequent questions posted by your instructor.
You are hired as a corporate accountant for Ryco In-dustries, Inc., a public company with shares traded on the New York Stock Exchange. The company has enjoyed consistently higher earnings each quarter, meeting or exceeding the expectations of Wall Street analysts every quarter for the past seven years. Soon after being hired, you discover a “reserve” account in the accounting records. Your inquiry shows that the account is designed to accumulate earnings defi ciencies or excesses, that is, to permit Ryco to adjust its earnings each quarter such that earnings not increase too little or too much. You bring your fi ndings to theattention of Ryco’s chief accounting offi cer, who tellsyou that the account merely allows Ryco to smooth or manage its earnings, something that Wall Street ana-lysts want to see. If earnings fl uctuated, she explains,analysts would make less optimistic estimates about the prospects of Ryco, and its stock price would take a hit. The CAO tells you, “Look, we’re jus01.08.16 06:38Complete Problem 10 on page 129 (Chapter 4) of the textbook. Post your completed response to the case in the main forum. The completed case should be approximately 400-500 words. Support your positions and provide citations for all outside sources used to develop and defend your position. To participate in follow-up discussion, ask questions or comment upon post by your classmates, respond to questions to your post, and respond to subsequent questions posted by your instructor.
You are hired as a corporate accountant for Ryco In-dustries, Inc., a public company with shares traded on the New York Stock Exchange. The company has enjoyed consistently higher earnings each quarter, meeting or exceeding the expectations of Wall Street analysts every quarter for the past seven years. Soon after being hired, you discover a “reserve” account in the accounting records. Your inquiry shows that the account is designed to accumulate earnings defi ciencies or excesses, that is, to permit Ryco to adjust its earnings each quarter such that earnings not increase too little or too much. You bring your fi ndings to theattention of Ryco’s chief accounting offi cer, who tellsyou that the account merely allows Ryco to smooth or manage its earnings, something that Wall Street ana-lysts want to see. If earnings fl uctuated, she explains,analysts would make less optimistic estimates about the prospects of Ryco, and its stock price would take a hit. The CAO tells you, “Look, we’re jus01.08.16 06:38Complete Problem 10 on page 129 (Chapter 4) of the textbook. Post your completed response to the case in the main forum. The completed case should be approximately 400-500 words. Support your positions and provide citations for all outside sources used to develop and defend your position. To participate in follow-up discussion, ask questions or comment upon post by your classmates, respond to questions to your post, and respond to subsequent questions posted by your instructor.
You are hired as a corporate accountant for Ryco In-dustries, Inc., a public company with shares traded on the New York Stock Exchange. The company has enjoyed consistently higher earnings each quarter, meeting or exceeding the expectations of Wall Street analysts every quarter for the past seven years. Soon after being hired, you discover a “reserve” account in the accounting records. Your inquiry shows that the account is designed to accumulate earnings defi ciencies or excesses, that is, to permit Ryco to adjust its earnings each quarter such that earnings not increase too little or too much. You bring your fi ndings to theattention of Ryco’s chief accounting offi cer, who tellsyou that the account merely allows Ryco to smooth or manage its earnings, something that Wall Street ana-lysts want to see. If earnings fl uctuated, she explains,analysts would make less optimistic estimates about the prospects of Ryco, and its stock price would take a hit. The CAO tells you, “Look, we’re jus01.08.16 06:38Complete Problem 10 on page 129 (Chapter 4) of the textbook. Post your completed response to the case in the main forum. The completed case should be approximately 400-500 words. Support your positions and provide citations for all outside sources used to develop and defend your position. To participate in follow-up discussion, ask questions or comment upon post by your classmates, respond to questions to your post, and respond to subsequent questions posted by your instructor.
