Anstead Co. is experiencing a decrease in sales and operating income for the fiscal year ending...
Anstead Co. is experiencing a decrease in sales and operating income for the fiscal year ending October 31. Ryan Frazier, controller of Anstead Co., has suggested that all orders received before the end of the fiscal year be shipped by midnight, October 31, even if the shipping department must work overtime. Because Anstead Co. ships all merchandise FOB shipping point, it would record all such shipments as sales for the year ending October 31, thereby offsetting some of the decreases in sales and operating income. Discuss whether Ryan Frazier is behaving in a professional manner.
Homework Answers
Solution:
Yes, Ryan Frazier is behaving in a professional manner. Ryan is trying to ship the goods by 31.10.2018 and there is nothing unethical he was doing. As goods are sold on FOB shipping point, therefore ownership goods transferred when goods are shipped from warehouse and Ryan can recognize revenue on shipping of goods. As he is trying to ship on last day of closing year, he is operating in the allowed framework and not violated any accounting rules or regulations.
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Anstead Co. is experiencing a decrease in sales and operating
income for the fiscal year ending...
Pfizer, Inc. (NYSE PFT) Fiscal Year Ending Fiscal Year Ending Fiscal Year Ending 12/31/15 48,851 Fiscal Year Ending 12/...
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