1. Noah Finlan MSM – 630 Bellevue University Dr. Henry Dorr

2.  Resources Unlimited formed in 1985.  38,000 miles of natural gas pipelines.  Natural gas industry regulated by the federal government.  Set profit margins.

3.  Merger of two companies.  New CEO appointed.  Industry deregulated.  Wild swings in cost price and selling price.

5.  The quarterly data for the years of 1986 & 1987 are quite volatile and follow no specific trend that can be easily identified.  In addition, the method used to compute the profit is unknown at this point in time.

8.  1988 – (64 Oil – 32 Gas) = 32 variant  1990 – (86 Oil – 32 variant) = 54 Gas accounts

11.  Male 1 = $50,000 per year.  Male 2 = $55,000 per year.  Male 3 = $52,000 per year.  Female 1 = $32,000 per year.  Mean for 3 males = $52,333 per year.

13.  Mean salary for 3 males = $52,333 per year.  Standard Deviation = 2,517  Mean – (2 x Std. Dev.) = Legal Minimum  $52,333 – (2 x 2,517) = $47,300  Legal Minimum – Female Salary = Raise amount.  $47,300 - $32,000 = $15,300 raise for the female accountant.

15. Calculations:  500 accounts / 30 days = 16.67  16.67 X 6 days = 100 accounts  500 accounts – 100 accounts = 400 accounts. Determination:  The CEO transferred 400 gas accounts into a dummy hedge fund to lessen the cash demands.  This failed and the company filed for Bankruptcy in June 1994.

16.  The CEO makes the decisions and then poorly conveys them to subordinates to carry out.  The accounting department seems to be concerned with “talk on the street” instead of offering solutions to the problems.

17.  The lack of a clearly defined profit structure is due in large part to the volatility of the market.  The communication seems to flow from the top down only.