Accounting Scenario BCOM/231 Version 1 1 University of Phoenix Material Accounting Scenario Riordan Manufacturing is looking to acquire the JJJ...

University of Phoenix Material

Accounting Scenario

Riordan Manufacturing is looking to acquire the JJJ Company and has formed a confidential ad hoc committee to perform several functions, including due diligence. The ad hoc committee was appointed by the chairman of the board (COB) of Riordan. Members of the committee are all familiar with one another and have worked in the past in various capacities.

John and Beth are both from the accounting team and have reviewed the files for JJJ Company, and are preparing to report their findings to the CEO and COB. They are not sure JJJ is financially stable enough to move forward with the acquisition. John has a B.A. in Accounting from University of Phoenix, received in 1990. He joined Riordan in 2004 as a staff accountant and was promoted to Accounting Manager in 2007. He is a democratic leader focused on sales profitability. Beth has a B.A. in Accounting from University of Phoenix, received in 2008; she came to Riordan in 2007 as an accounting assistant. She was recently promoted to staff accountant by John. She has a laissez-faire leadership style focused on policies and procedures.

William is the CEO of Riordan and he wants to get this acquisition done, but only if it means greater profit for the company and bigger dividends for the stockholders. Although he knows business, he relies on John’s advice for the details on accounting oversight. William, a finance major, is an MBA graduate of University of Phoenix from 2000. He has been president of Riordan since 2006, when he was hired by the COB. He is an authoritarian leader who is bottom-line oriented.

Mark is the sales manager, and he is excited about JJJ’s sales numbers as well as the potential they bring to Riordan. He does not know anything about accounting, but he likes the prospect of acquiring their book of business. Mark has B.A. in History from University of Phoenix, received in 1995; he came to Riordan in 2005 from JJJ Company where he was the top sales employee. He is a democratic leader whose focus is on new sales efforts. He is focused on his sales staff.

Dana is the marketing manager. She is new, but her team has worked closely with Mark in sales for a number of years. While working with Mark on this committee, she shares his excitement about bringing Riordan to a new market and using some of JJJ’s existing marketing channels. Dana has an MBA from University of Phoenix, received in 2007. She is new to the company; she came over from a competitor. She has been working with the sales manager and her team to reinvent the marketing department. She is an energetic leader with a democratic style.