Sophie, the CFO of Slalom Ski Supplies, received a watch from one of her company’s largest vendors, Colorado Ski Shoppe. She received the gift with a card congratulating her on Slalom’s recent merger with another company. In determining whether accepting the gift would create a significant threat to her compliance with the AICPA code, which factor should Sophie consider?

Down under products, ltd., of australia has budgeted sales of its popular boomerang for the next four months as follows: unit salesapril 74,000may 85,000june 114,000july 92,000the company is now in the process of preparing a production budget for the second quarter. past experience has shown that end-of-month inventory levels must equal 10% of the following month’s unit sales. the inventory at the end of march was 7,400 units.required: prepare a production budget by month and in total, for the second quarter.