BYP 9-6 COMMUNICATION ACTIVITY
Date 2014
Mrs. Megan Parcells, CEO
Life Protection Products
Dear Mrs. Parcells:
There is a solution to your problem. Before describing that, it may be
helpful for you to understand why this situation occurred. The primary
reason is that you are purchasing kit supplies at least two months in advance
Eventually, as sales stabilize, you will find that cash inflows exceed cash
outflows, and your need for additional cash will subside. Presently, I think
it would be a good idea to try to borrow additional funds. I have not seen all
your financial data, but judging only from the cash budget you showed me,
There is also a possibility that you have underpriced your product. You are
providing a valuable service in assembling this information and these
materials. The fact that every seminar results in a sellout of the materials
BYP 9-6 (Continued)
In my opinion, the best way to make sure these kits are available to as
many families as possible is for you and Sue to have a consultant evaluate
additional advice.
Sincerely,
Ima Student
Best and Superior, Certified Public Accountants
BYP 9-7 ETHICS CASE
(a) At best, if you disclose the errors in your calculations, you will be
you projected do not materialize.
(c) The most ethical scenario would be to admit your error, let the president
know about the error, provide the president with corrected projections,
BYP 9-8 ALL ABOUT YOU
Personal Budget
Typical Month
Income:
Wages earned ………………………………………….. $2,500
Interest income ………………………………………… 50
Expenses:
Rent ………………………………………………………………….. 500
Utilities
Food:
Groceries ………………………………………………… 100
Eating out ………………………………………………… 150
Insurance ………………………………………………………….. 100
Transportation …………………………………………………… 150
BYP 9-9 CONSIDERING YOUR COSTS AND BENEFITS
We are concerned that the personal budgets presented on websites and in
financial planning textbooks often list student loans among the sources of