Case Study Resources Unlimited Ashley Holz MSM 630

Overview Baseline Gas Profits for the years 1986 -1988 Accounts in the year 1990

Overview Management Accounting Style Practices Profit Structure Lines of Communication

Baseline Profits For the years - 1986 -1988 400 350 300 250 Q 1

Year 1990 In 1988 Resource Unlimited reported the following: 32 Gas Accounts 64 Oil

Gas Accounts in 1990 140 120 100 Oil Accounts 80 60 Natural Gas Accounts

Salaries Accounting dept. 3 - Males being paid the following: $50, 000 $52, 000

Hedge Funds 500 Gas accounts to maintain cash flow for 30 days. CEO =

Management Style and Accounting Practices New CEO Vision was too complex No action was

Profit Structure Inaccurate accounts to 30 day cash flow Data was insufficient and flawed

Lines of Communication Memo should have not been ignored Wall Street analysis should have

Conclusion Baseline profits for 1986 -1988 was $236 million dollars There were 43 gas

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Case Study: Resources Unlimited Ashley Holz MSM 630 Bellevue University

Overview Baseline Gas Profits for the years 1986 -1988 Accounts in the year 1990 Salary Discrimination Hedge Funds and gas accounts

Overview Management Accounting Style Practices Profit Structure Lines of Communication

Baseline Profits For the years - 1986 -1988 400 350 300 250 Q 1 200 Q 2 150 Q 3 100 Q 4 50 0 1986 1987 1988

Year 1990 In 1988 Resource Unlimited reported the following: 32 Gas Accounts 64 Oil Accounts In 1990 an internal analysis projected the following: 86 Oil Accounts

Gas Accounts in 1990 140 120 100 Oil Accounts 80 60 Natural Gas Accounts 40 20 0 1988 1990

Salaries Accounting dept. 3 - Males being paid the following: $50, 000 $52, 000 $55, 000 $32, 000 Female The female accountant raise would need to be at least $20, 000 in order to avoid a lawsuit.

Hedge Funds 500 Gas accounts to maintain cash flow for 30 days. CEO = too little too late to transfer into a dummy hedge fun 100 Gas accounts were transferred to the hedge fund to satisfy creditors

Management Style and Accounting Practices New CEO Vision was too complex No action was taken after a memo was sent No one was trained to develop hedge fund relationships CEO did not transfer funds in time to avoid bankruptcy Data was given incomplete to New York analyst When requested unable to give accurate account information Skewed data being reported in the media

Profit Structure Inaccurate accounts to 30 day cash flow Data was insufficient and flawed media reports Complexity without proper personnel trained

Lines of Communication Memo should have not been ignored Wall Street analysis should have been reviewed before sent Dummy hedge fund was not communicated properly with any other division to buy time

Conclusion Baseline profits for 1986 -1988 was $236 million dollars There were 43 gas accounts in 1990 There were 100 gas accounts moved to hedge fund A raise of $20, 000 would be needed to settle the discrimination suit for female accountant CEO did not use the proper trained staff to manage the hedge fund accounts The lack of communication caused the company to go bankrupt