Resources unlimited corporation

1. Resources unlimited corporation Case Study Presented by Phillip C. Hammonds

2. Review of History for years 1987-1988 • Baseline profits for years 1987-1988 • Number of gas accounts in 1990 • Number of accounts transferred to hedge fund • What would have been an appropriate raise for female accountant?

3. Additional items to review • Corporate senior management style • Accounting practices • Profit structure • Lines of communication

4. Baseline Profits for Years 1987-1988 in Millions

5. Statistics on profits • Quarterly profits in millions in order ($33, $132, $157, $267, $289, $321, $342, $349) • Mean = $236.25 • Standard Deviation = $115.43 • Variance = 13,323.64 • Baseline profits had a high variance • Possibly due to accounting practices or other unknown factors

6. Number of Gas Accounts in 1990 • In 1988 there were 32 gas accounts and 64 oil accounts • 1990 projections - 86 Oil accounts • 1990 projections - ? Gas accounts • Gas accounts should have been 43 total

7. 1988 total Accounts

8. Number of accounts transferred to a hedge fund • 500 gas accounts could produce cash flow • Revenue would only last 30 days

9. Female Accountant’s appropriate compensation • Accountant’s Salaries $50,000, $52,000, $55,000 • Female Accountant Salary was $32,000 • Mean Male Salary = $52,333 • Standard Deviation = $2516 • At 95% of Population or 2 Deviations • Salary should have been $47,000 (rounded to nearest $1000) • A $15,000 raise would have been appropriate

10. Gender Salary Comparison

11. Corporate Management Style • Appears that there was limited research • Management should have listened to accountants • Management should have been more transparent to media • CEO failed to display ethics and leadership • CEO deliberately transferred gas accounts to dummy hedge fund

12. Accounting Practices and Profit Structure • Accountants attempted to identify problem with derivative model • Focus was too concerned about wall street • The attempt was to balance out profits • In reality it did not work • Lines of Communication broke down • Bankruptcy was the result of these failures