The Dotson Company, owner of Bleacher Mall, charges Rich Clothing Store a rental fee of $600 per month plus 5% of yearly profits over $500,000. Matt Rich, the owner of the store, directs his accountant, Ron Hamilton, to increase the estimate of bad debt expense and warranty costs in order to keep profits at $475,000.
* Determine the stakeholders who are harmed by increasing the estimates and analyze how they will be harmed.
* Evaluate the actions Hamilton can take based on his boss's directive and the implications of those actions.
* Propose an alternative solution that is both ethical and meets the needs of the business.