Prophet company signed a long-term purchase contract to buy timber from the u. s. forest service at $300 per thousand board feet. under these terms, prophet must cut and pay $6,000,000 for this timber during the next year. currently, the market value is $250 per thousand board feet. at this rate, the market price is $5,000,000. jerry herman, the controller, wants to recognize the loss in value on the year-end financial statements, but the financial vice president, billie hands, argues that the loss is temporary and should be ignored. herman notes that market value has remained near $250 for many months, and he sees no sign of significant change.

a. what are the ethical issues, if any?
b. is any particular stakeholder harmed by the financial vice president's decision?
c. what should the controller do?

Adds up the money earned by producers plus taxes paid to the goverment. a) income approach b) product approach c) expenditure approach

The following selected circumstances relate to pending lawsuits for erismus, inc. erismus’s fiscal year ends on december 31. financial statements are issued in march 2019. erismus prepares its financial statements according to u.s. gaap. required: indicate the amount erismus would record as an asset, liability, or not accrued in the following circumstances. 1. erismus is defending against a lawsuit. erismus's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $1,000,000. 2. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages could fall anywhere in the range of $2,000,000 to $4,000,000, with any damage in that range equally likely. 3. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages will eventually be $5,000,000, with a present value of $3,500,000. 4. erismus is a plaintiff in a lawsuit. erismus's management believes it is probable that the company eventually will prevail in court, and that if it prevails, the judgment will be $1,000,000. 5. erismus is a plaintiff in a lawsuit. erismus’s management believes it is virtually certain that the company eventually will prevail in court, and that if it prevails, the judgment will be $500,000.

The fiscal 2016 financial statements of nike inc. shows average net operating assets (noa) of $8,450 million, average net nonoperating obligations (nno) of $(4,033) million, average total liabilities of $9,014 million, and average equity of $12,483 million. the company's 2016 financial leverage (flev) is: select one: a. (0.477) b. (0.559 c. (0.323) d. (0.447) e. there is not enough information to determine the ratio.