Who-are-the-stakeholders-in-this-case-business-and-finance-homework-help
BYP8-8 |
As its year-end approaches, it appears that Ortiz Corporation’s net income will increase 10% this year. The president of Ortiz Corporation, nervous that the stockholders might expect the company to sustain this 10% growth rate in net income in future years, suggests that the controller increase the allowance for doubtful accounts to 4% of receivables in order to lower this year’s net income. The president thinks that the lower net income, which reflects a 6% growth rate, will be a more sustainable rate of growth for Ortiz Corporation in future years. The controller of Ortiz Corporation believes that the company’s yearly allowance for doubtful accounts should be 2% of receivables. Instructions
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·I NEED 500 WORDS. A FULL ESSAY INTRODUCTION, BODY WITH CONCLUSION in APA format
·ONE WORKS CITED PAGE.