How serious were stephen richard’s actions? why? 2. if computer associates achieved the same financial results through gaap flexibility, would your answer to 1 change? 3. does it matter what your competitors are doing? 4. step back and consider management’s incentives and choices? what is the motivation for managing earnings? 5. richards describes how difficult it is to operate in the "gray." richard wanted more "framework." do you agree or disagree? do personal boundaries suffice? 6. suppose you were placed in stephen richard’s position and were under pressure to extend the fiscal quarter. how would you handle the situation differently? what would be expected consequences?

Waterway company’s record of transactions for the month of april was as follows. purchases sales april 1 (balance on hand) 672 @ $6.00 april 3 560 @ $11.00 4 1,680 @ 6.08 9 1,568 @ 11.00 8 896 @ 6.41 11 672 @ 12.00 13 1,344 @ 6.51 23 1,344 @ 12.00 21 784 @ 6.61 27 1,008 @ 13.00 29 560 @ 6.79 5,152 5,936 (a) calculate average-cost per unit. (b) assuming that periodic inventory records are kept in units only, compute the inventory at april 30 using lifo and average-cost. (c) assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) fifo and (2) lifo. (d) compute cost of goods sold assuming periodic inventory procedures and inventory priced at fifo.