1. RESOURCES UNLIMITED BANKRUPTCY ANALYSIS
ANGELA SMITH
MSM630

2. Agenda Baseline Profits 1990 Gas Accounts
Gas Accounts Transferred to Hedge Fund
Salaries – Entry Level Management
Appropriate Raise To Mitigate Risk – Female Accountants
Final Analysis
Corporate Management Style
Accounting Practices
Profit Structure
Lines of Communication

3. Baseline Profits
From Fiscal year 1986/1987 to 1987/1988 there was a profit loss of 26%

4. Base Line Profits Mean (+/- SD)
Fiscal YR 1 Mean 272 with a SD’s of 83 an Fiscal YR 2 Mean 201 with a SD’s of 145 an 290

5. Baseline Profit Conclusion
Fiscal year two operated at a 26% loss of profit
The standard deviations prove a larger fluctuation in profit activity in fiscal year two.
Business practices were incorrectly based on fiscal year one

6. 1990 Gas Accounts
Based on 1988 gas/oil ratio the projected 1990 gas accounts would have been 43

7. Gas Accounts Transferred to Hedge Fund
Analysis
Based on the incomplete and inconsistent data in regards to gas accounts, the accounts transferred to hedge funds are unknown.

8. Salaries-Entry Level and SD Mean
2 SD from Mean Salary
Mean salary of top 3 males is $ SD is $5034. To mitigate risk, the female employee must receive a raise of $ (below 2SD) There is no known standard compensation formula within the organization.

9. Final Analysis The management style is non inclusive and unclear.
The accounting practices are incomplete and inconclusive.
The profit structure is incomplete and unclear.
The lines of communication are nearly nonexistent and ambiguous.
The demise of the Resources Unlimited Corporation is due to mismanagement, less than optimal HR policies and poor accounting practices.