Atlantis Company

Consider the following scenario:

Atlantis Company sells computer components and plans on borrowing some money to expand. After reading a lot about earnings management, Andy, the owner of Atlantis, has decided that he should try to accelerate some sales to improve his financial statement ratios. He has called his best customers and asked them to make their usual January purchases by December 31. He told them he would allow them until the end of February to pay for the purchases, just as if they had made their purchases in January.

Respond to the following questions:

What do you think are the ethical implications of Andy's actions? (1 to 2 paragraphs)
Which ratios will be improved by accelerating these sales? (1 paragraph)
Would you advise Andy to proceed with this plan? Why or why not? (1 to 2 paragraphs)

Grading Criteria

% of grade for this assignment

Response to assignment

80%

Peer Response (a minimum of 2)

20%

In your own words, please post a response to the Discussion Board and comment on other postings. You will be graded on the quality of your postings.
For assistance with your assignment, please use your text, Web resources, and all course materials.

Unit Materials

Unit 5 Course Materials

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