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Finance & Accounting
Pages 3 (753 words)
Hubbard Inc: Jim Brock Case Accounting Ethics Insert name Course code Instructor’s name Name of the university Table of Contents 1.0 Brief Overview 3 1.1 Case Description 3 1.2 Outcome of Actions 3 2.0 CASE ANALYSIS 4 2.1 Brock’s Professional Responsibility to Hubbard Inc with Regards to Issuance of 2012 Annual Report 4 2.2 Was Jim Ethical in his Actions?
In fact, he is supposed to develop and issue in timely manner annual reports for Hubbard’s. Based on the preliminary report which he made on 2012 accounting records, results obtained showed a clear indication of a very profitable year. Basically, net income recorded was more than the projection by financial analysts for the year. The results of the financial performance pleased Brock therefore, he made a suggestion to his father to acquire some of the Hubbard’s stock because there was high possibility that stock price will shoot up after the announcement of the 2012 results. In response to his suggestion, the father believed in his words and bought some of the Hubbard’s stock block at a price of $25 per share. 1.2 Outcome of Actions After the announcement of Hubbard’s Inc. 2012 annual report on Feb, 15, 2013 alongside favorable press coverage on the company’s remarkable performance, a boost on stock price was reported, in which, share price went up to $32. This was an equivalent gain of $7 per share, implying that in case Brock’s father decides to sell off his share at this time of the year, he will earn a profit of $7 per share sold. ...
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