The article I have chosen to summarize highlights the bill practices of a San Diego--based company, Jack in the stripe, Inc. (NYSE: JBX). In addition to summarizing the article, I will discuss how the concepts of the article relate to my organization The atomic number 78 Company Inc., including, making recommendations for improvement for my organization based on the article. Lastly, explain the importance of ethics in history and pecuniary decision making.
Although Jack in the Box remained strong with wide varied menu items and unique marketing strategies through the E. coli incident of 1993, the current economic slump in the fast pabulum industry highlights serious controversy over the companys new harvest-home strategy and accounting practices (Bauder). In this article, analysts are challenging the accounting practices of a San Diego-based company, Jack in the Box. In their 10-k report, Jack in the Box is listing franchise sales as different revenues, which on paper triples their operation income to $9.1 million. David N. Allen of investment banking firm Caris & amp; Co., questions this practice as the, Selling of company assets to franchisees is not the homogeneous as selling a food product. He goes further saying that the company should separate operating honorarium from non-operating income. Reporting gains from asset sales to franchisees is inappropriate.
Jack in the Box countered this claim by stating that other fast food gyves use the same accounting practices, which is consistent with GAAP (Generally original Accounting Principles). In defense of Jack in the Box, bud Leedom, senior analyst at Wells Fargo Securities believes that Jacks accounting proficiency is specifically disclosed to Wall Street and as such is not troubled by their practices. Yet, on the other hand, David Geraty of red blood cell Capital Markets points out that by employing this practice the company is just compensating softer sales with...
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