Question

BYP5-7 Jacquie Boynton was just hired as the assistant treasurer of Key West Stores. The company is a speciality chain store with nine retail stores concentrated in one metropolitan area. Among other things, the payment of all invoices is centralized in one of the departments Jacquie will manage. Her primary responsibility is to maintain the company's high credit rating by paying bills when due and to take advantage of all cash discounts.

Phelan Carter, the former assistant treasurer who has been promoted to treasurer, is training Jacquie in her new duties. He instructs Jacquie that she is to continue the practice of preparing all checks "net of discount" and dating the checks the last day of the discount period. "But," Phelan continues, "we always hold the checks at least 4 days beyond the discount period before mailing them. That waay, we get another 4 days of interest on our money. Most of our creditors need our business and don't complain. And, if they scream about ouir missing the discount period, we blame it on the mail room or the post office,. We've only lost one discount out of every hundred we take that way. I think everybody does it. By the way, welocme to our team!"

Instructions

(a) What are the ethical considerations in this case?

(b) Who are the stake holders that are harmed or benefitted in this situation?

(c) Should Jacquie continue the practice started by Phelan? Does she have any choice?

Answer the 3 questions in one paragraph

Answer 1

Please find the answer below

Here the ethical consideration is to book all invoices on time and show a true and fair view to the managment. In this case stakeholder which will be impacted will be the managment of company,the vendors of company,Jacquie & Phelan. Jacquie should not continue practice started by Phelan. She should discuss with Phelan the effects of such accounting on our relation with vendors. If Phelan still forces her to follow the currect practice she should point out this to higher managment of the company