RESOURCES UNLIMITED BANKRUPTCY ANALYSIS ANGELA SMITH MSM 630

Agenda Baseline Profits 1990 Gas Accounts Transferred to Hedge Fund Salaries – Entry Level Management Appropriate Raise To Mitigate Risk – Female Accountants Final Analysis Corporate Management Style Accounting Practices Profit Structure Lines of Communication

Baseline Profits 1986 -1988 Annualized Profits 400 350 300 MILLIONS 250 200 Year 1 Year 2 150 100 26% 50 0 Q 1 Q 2 Q 3 Q 4 QUARTERLY PROFITS From Fiscal year 1986/1987 to 1987/1988 there was a profit loss of 26%

Base Line Profits Mean (+/- SD) 1986 -1988 PROFIT MEAN(+/- 2 SD ) 1986 -1988 PROFIT MEAN(+/- 1 SD) 400 600 350 500 300 400 300 200 MILLIONS 250 150 200 100 0 YEAR 1 50 YEAR 2 -100 0 YEAR 1 YEAR 2 QUARTERLY PROFITS -200 QUARTERLY PROFITS Fiscal YR 1 Mean 272 with a SD’s of 83 an 166 - Fiscal YR 2 Mean 201 with a SD’s of 145 an 290

Baseline Profit Conclusion Fiscal year two operated at a 26% loss of profit The standard deviations prove a larger fluctuation in profit activity in fiscal year two. Business practices were incorrectly based on fiscal year one

1990 Gas Accounts GAS; 43 OIL; 86 Based on 1988 gas/oil ratio the projected 1990 gas accounts would have been 43

Gas Accounts Transferred to Hedge Fund Analysis Based on the incomplete and inconsistent data in regards to gas accounts, the accounts transferred to hedge funds are unknown.

Salaries-Entry Level and SD Mean Salaries– Entry Level 2 SD from Mean Salary SALARIES ENTRY LEVEL MANAGMENT MALE SALAY MEAN +/- 2 SD 70000 SALARIES 60000 $55 000 $50 000 $52 000 50000 40000 $32 000 30000 20000 10000 MALE 1 MALE 2 MALE 3 FEMALE 0 Mean salary of top 3 males is $52333. 2 SD is $5034. To mitigate risk, the female employee must receive a raise of $15300. 00 (below 2 SD) There is no known standard compensation formula within the organization.

Final Analysis The management style is non inclusive and unclear. The accounting practices are incomplete and inconclusive. The profit structure is incomplete and unclear. The lines of communication are nearly nonexistent and ambiguous. The demise of the Resources Unlimited Corporation is due to mismanagement, less than optimal HR policies and poor accounting practices.