1 answer

Ryan Company has as a goal that its earnings per share should increase by at least 3% each year; this goal has been attained every year over the past decade. As a result, the market price per share of Ryan's common stock also has increased each year. Last year (2012), Ryan's earnings per share was $3. This year, however, is a different story. Because of decreasing sales, preliminary computations at the end of 2013 show that earnings per share will be only $2.99 per share.

You are the accountant for Ryan. Ryan's controller, Jim Nastic, has come to you with some suggestions. He says, “I've noticed that the decrease in revenues has been primarily related to credit sales. Since we have fewer credit sales, I believe we are justified in reducing our bad debts expense from 4% to 2% of net sales. I also think that because of the decreased sales, we won't use our factory equipment as much, so we can extend its estimated remaining life from 10 to 15 years for computing our straight-line depreciation expense. Based on my calculations, if we make these changes, Ryan's 2013 earnings per share will be $3.06. This will sure make our shareholders happy, not to mention our CEO. You may even get a promotion. What do you think?”

***I know that there are a lot of answers on this problem, but kindly answer to your own interpretation***

**PROMPT: Discuss the issues and suggest ideas that you would put into a response to the president of the company based on the facts of the case and appropriate accounting guidance.**

1 answer
#####
Determine the mass of ethylene glycol dissolved in 243 g of an 24.2 % ethylene glycol...

Determine the mass of ethylene glycol dissolved in 243 g of an 24.2 % ethylene glycol solution...

1 answer
#####
Fully explain your answers for all questions. Q1. A password must have exactly ten symbols, each...

Fully explain your answers for all questions. Q1. A password must have exactly ten symbols, each symbol being one of the 26 lower case letters or one of the five special symbols as follows: *, &, %, $, #. (You can leave your answer as a mathematical expression rather than a number ). (a) How man...

1 answer
#####
2) Below is the data for a personality questionnaire measuring conscientiousness. These data were taken from...

2) Below is the data for a personality questionnaire measuring conscientiousness. These data were taken from a random sample of 16 undergraduate psychology majors. In the general population, scores on this questionnaire are normally distributed with a mean (p) of 50. You hypothesize that this sample...

1 answer
#####
Please do all of the steps Zoom 125% Insert Table Chart Text Shape Media Comment For...

please do all of the steps Zoom 125% Insert Table Chart Text Shape Media Comment For each of the following studies, conduct the 4 steps of hypothesis testing with the z test. If you find it helpful, you can use the boxes on the right to sketch out a normal curve, plot your crew, shade in the region...

1 answer
#####
In a scene from the movie 'Matrix Reloaded', Trinity (one of the 'good characters') is falling...

In a scene from the movie 'Matrix Reloaded', Trinity (one of the 'good characters') is falling out a high window towards the ground with agent Johnson (a 'bad guy') falling out of the window towards her. (The agent falls from the window after Trinity does, so the agent is abo...

1 answer
#####
A,C,G please 1. Let A, B, and C be subsets of some universal set u. Prove...

A,C,G please 1. Let A, B, and C be subsets of some universal set u. Prove the following statements from Theorem 4.2.6 (a) AUA=/1 and AnA=A. (b) AUO- A and An. (c) AnB C A and ACAUB (d) AU(BUC)= (A U B) U C and An(B n C)-(A n B) n C. (e) AUB=BUA and A n B = B n A. (f) AU(BnC) (AU B) n(AUC) (g) (A ...

1 answer
#####
I need help with this physical chemistry question please, i can't figure out 3 b) if...

I need help with this physical chemistry question please, i can't figure out 3 b) if someone can please help me out?...

1 answer
#####
Discuss barriers caused by an organizational culture that can be encountered by nursing leaders that can...

Discuss barriers caused by an organizational culture that can be encountered by nursing leaders that can make them feel powerless....

1 answer
#####
What is the term that means "not able to be dissolved in a particular substance

What is the term that means "not able to be dissolved in a particular substance?"...

1 answer
#####
2. Financial data for Beaker Company for last year appear below: Beaker Company Statements of Financial...

2. Financial data for Beaker Company for last year appear below: Beaker Company Statements of Financial Position Beginning Balance Ending Balance Assets: Cash Accounts receivable Inventory Plant and equipment (net) Investment in Cedar Company Land (undeveloped) Total assets $ 252,000 165,000 298,00...

1 answer
#####
References) Use the References to access important values if needed for this question. The following information...

References) Use the References to access important values if needed for this question. The following information is given for ethanol, C2HOH, at latm: boiling point 78.4 °C specific heat liquid 2.46 J/g°C AHa(78.4 °C)38.6 kJ/mol At a pressure of 1 atm, kJ of heat are needed to vaporize a...

1 answer
#####
A very small town has only 15 households and they have the following annual incomes: $52,000,...

A very small town has only 15 households and they have the following annual incomes: $52,000, $22,000, $92,000, $8,000, $118,000, $62,000, $38,000, $14,000, $132,000, $46,000, $26,000, $96,000, $54,000, $110,000, $80,000. Based on this information, answer the following: a) Calculate the share of tot...

1 answer
#####
A computer is on sale for $1600, which is a 20% discount off the regular price

A computer is on sale for $1600, which is a 20% discount off the regular price. What is the regular price?...

1 answer
#####
Show all steps. SHOW ALL WORK Section Number rsStudent Number In| Expand the given logarithm and...

Show all steps. SHOW ALL WORK Section Number rsStudent Number In| Expand the given logarithm and simplify: I. ry 2. Using the properties of logarithms, write the following expression as a single logarithm: 2log,(x)log,)+log,() 3. Solve the following equations analytically: a. 52-125 35x+1-171-r b....