I’m trying to learn for my Accounting class and I’m stuck. Can you help?
Discussion Topic 1: Ethical-Decision Making
Read the scenario about Stacy Lynn, Inc. After you complete the reading respond to the following components:
Part A: If Stacy Lynn wants to show the bank the maximum profit over the previous 2-year period, which costing method should be presented?
Part B: However, the bank requires that all financial statements conform to Generally Accepted Accounting Principles (GAAP). Based on that requirement, which costing method should be presented?
Part C: The bank has delivered a memo in preparation for the meeting to negotiate the Credit Line; the memo states that they will expect a significant Net Income. Based on your responses to Parts A and B, what are some of the legal and ethical issues that may be of importance to Stacy Lynn?
attached the scenario