1. Jessica Phung MSM 630-T302 Bellevue University

2.  Baseline profits for 1986-1988  Gas Accounts in 1990  Salary Discrimination  Hedge Funds  Senior Management  Accounting Practices  Profit Structure  Lines of Communication

3.  What was the corporation’s baseline profits for 1986-1988?

4.  Cumulative Total: $1,890 million  Mean: $236.25 million  Standard Deviation: $115.43 million

5.  According to Resources Unlimited, in 1988 there were: ◦ 32 Gas Accounts ◦ 64 Oil Accounts  Internal analysis projected 86 oil accounts for 1990

6.  What was their number of gas accounts in 1990?

7.  Gender discrimination in Accounting dept.  Previous salaries of employees performing the same job title: ◦ (3) males  $50,000; $55,000; $52,000 ◦ (1) female  $32,000  To avoid lawsuit, the appropriate raise for the female accountant would be $20,000.

8.  500 gas accounts to sustain for 30-days  CEO transfers gas accounts to a dummy-fund to lessen cash demands  16.6 percent or 100 gas accounts were transferred to the Hedge Fund

9.  New CEO’s vision to take advantage of daily changes in supply/demand was too risky.  No technically trained personnel to monitor hedge funds.  Accounts sent a memo, no action was taken.  CEO transfers funds in an attempt to avoid bankruptcy, insufficient planning.

10.  CEO’s decision to use complex financial instruments without technical advisors.  Accountants suspected skewed data.  Incomplete data sent to New York analysts.  Inability to provide accurate data on gas accounts when requested.

11.  Utilized derivatives and hedge funds, complex financial instruments without technical personnel.  Inaccurate forecasting, IE. 500 accounts to sustain a company workflow for 30-days  Current structure produced insufficient data and flawed reports

12.  CEO ignored memo from accountants.  Incomplete data sent to Wall Street analysts  CEO transfers a number of gas accounts to a dummy hedge fund but did not communicate with accountants or strategic planning division

13.  Average baseline profits for 1986-1988 was $236 million  Gas Accounts in 1990 was 43.  To settle the salary discrimination, a raise of $20,000.  100 gas accounts moved to Hedge Fund.  CEO did not use technical advisors for derivatives and hedge funds  Accounting wary of skewed data given to analysts  Profit structure produced incorrect forecasts.  Lack of communication in the organization, CEOs to the bottom-line.