Ruby operates a hobby supply store. she maintains her books using the cash method. at the end of the year, her accountant computes her accrual basis income that is used on her tax return. for 2019, ruby had cash receipts of $840,000, which included $100,000 collected on accounts receivable from 2018 sales. it also included the proceeds of a $50,000 bank loan. at the end of 2019, she had $175,000 in accounts receivable from customers, all from 2019 sales. ruby paid cash for all of the purchases. the total amount she paid for merchandise in 2019 was $560,000. at the end of 2018, she had merchandise on hand with a cost of $45,000. at the end of 2019, the cost of merchandise on hand was $80,000. ruby's accrual basis gross receipts for 2019 are $. the cost of goods sold for 2019 under the accrual method is $. the gross profit from merchandise sales for 2019 under the accrual basis is $.

David burdick is the ceo of acme bubblegum, a successful public company. as one of the cofounders of the company, burdick has enjoyed speaking and writing about the success of acme bubblegum for several years. typically, he speaks at conferences or directly to the press, but recently, he has been blogging about his firm anonymously. specifically, he defended a recent advertising campaign that was unpopular among consumers and pointedly attacked one of acme bubblegum’s competitors. burdick deeply enjoys his anonymous blogging and believes that none of his readers actually know that he works for acme bubblegum.should burdick be allowed to praise his company’s performance anonymously online? should he be allowed to attack his competitors without disclosing his relationship with the company? how would you feel if the ceo of a company at which you shopped was secretly writing criticisms of his or her competition? how would you feel if you knew a writer for your favorite blog was actually closely involved in a company that the blog discussed? 1. define the ethical issue? 2. who are the primary stakeholders? 3. what are the possible alternatives? 4. how could you evaluate the ethical implications of the alternative actions (use appropriate decision rules)? 5. what action would you recommend and why?