Due process: Right to have a just cause: substantial Right to a hearing, etc.: procedural Whistleblowing: As an employee I have a duty to be loyal to the employer, i.e. help the employer be successful. Some people think that it is always wrong to blow the whistle, because it is disloyal. If we are allowed to blow the whistle, then we need to justify that decision. Michael Davis: he thinks that we can justify whistle-blowing Ronald Duska: whistle-blowing is not a moral issue as such, we have a right to reveal any information we like. Davis: Standard theory: it is supposed to reflect what most people consider as whistle-blowing and what they find is justifiable to do. Consequentialist: the consequences count. Required/permissible whistle-blowing: It is permissible if we have tried everything to solve the issue, but we cannot say for sure that there is a threat: permissible. Required, it is our duty to blow the whistle: we can ascertain objectively that there is a threat and it is possible that we can prevent the harm. The theory is based on a cost-benefit analysis: what happens to the whistle-blower himself/herself is also relevant to consider. The paradigm case of whistle-blowing: Boisjoly case, 0-rings: Test the standard theory: Paradox 1: the whistleblower does not consider the harm he may do to himself. Paradox 2: prevention of harm is not relevant, because the accident had already happened. Paradox 3: failure. It is not relevant if we prevent any harm. Complicity theory: Davis’s attempt to improve our theory of whistle-blowing. Complicity theory: non-consequentialist, what is morally relevant to discuss is if we contribute to any wrong-doing or not. If we do, then we should blow the whistle. If we don’t, then we should not. 1st condition: what you reveal derives from your work 2nd condition: voluntary member 3rd condition: the organization has to be legitimate, a criminal organ. Cannot be considered legitimate 4th condition: you contribute to the wrong-doing, unless you blow the whistle. The paradigm case of whistle-blowing: the Boisjoly case We avoid the paradox of burden: Boisjoly did not consider the consequences for himself We avoid the paradox of preventing harm: it is not what should be considered The paradox of missing the point of moral action: sometimes we are responsible even if we do not cause the problem. Duska: business is all about profits, the shareholder theory. There is no loyalty in the business world: 1st reason: it is about profits 2nd reason: you can only be loyal to individuals, not to abstract entities. Individualism: loyalty is a relationship between individuals independent of profits considerations Holism: rejected Conclusion: whistle-blowing is not a moral issue, because we do not owe anybody loyalty in business. BBA 3301 Unit V Assignment Instructions: Enter all answers directly in this worksheet. When you are finished, select Save As, and save this document using your last name and student ...

1. Due process:
Right to have a just cause: substantial
Right to a hearing, etc.: procedural
Whistleblowing:
As an employee I have a duty to be loyal to the employer, i.e.
help the employer be successful.
Some people think that it is always wrong to blow the whistle,
because it is disloyal.
If we are allowed to blow the whistle, then we need to justify
that decision.
Michael Davis: he thinks that we can justify whistle-blowing
Ronald Duska: whistle-blowing is not a moral issue as such, we
have a right to reveal any information we like.
Davis:
Standard theory: it is supposed to reflect what most people
consider as whistle-blowing and what they find is justifiable to
do.
Consequentialist: the consequences count.
Required/permissible whistle-blowing:
It is permissible if we have tried everything to solve the issue,
but we cannot say for sure that there is a threat: permissible.
Required, it is our duty to blow the whistle: we can ascertain
objectively that there is a threat and it is possible that we can
prevent the harm.
The theory is based on a cost-benefit analysis: what happens to

2. the whistle-blower himself/herself is also relevant to consider.
The paradigm case of whistle-blowing: Boisjoly case, 0-rings:
Test the standard theory:
Paradox 1: the whistleblower does not consider the harm he may
do to himself.
Paradox 2: prevention of harm is not relevant, because the
accident had already happened.
Paradox 3: failure. It is not relevant if we prevent any harm.
Complicity theory: Davis’s attempt to improve our theory of
whistle-blowing.
Complicity theory: non-consequentialist, what is morally
relevant to discuss is if we contribute to any wrong-doing or
not. If we do, then we should blow the whistle. If we don’t, then
we should not.
1st condition: what you reveal derives from your work
2nd condition: voluntary member
3rd condition: the organization has to be legitimate, a criminal
organ. Cannot be considered legitimate
4th condition: you contribute to the wrong-doing, unless you
blow the whistle.
The paradigm case of whistle-blowing: the Boisjoly case
We avoid the paradox of burden: Boisjoly did not consider the
consequences for himself
We avoid the paradox of preventing harm: it is not what should
be considered
The paradox of missing the point of moral action: sometimes we
are responsible even if we do not cause the problem.

3. Duska: business is all about profits, the shareholder theory.
There is no loyalty in the business world:
1st reason: it is about profits
2nd reason: you can only be loyal to individuals, not to abstract
entities.
Individualism: loyalty is a relationship between individuals
independent of profits considerations
Holism: rejected
Conclusion: whistle-blowing is not a moral issue, because we do
not owe anybody loyalty in business.
BBA 3301 Unit V Assignment
Instructions: Enter all answers directly in this worksheet. When
you are finished, select Save As, and save this document using
your last name and student ID as the file name. Upload the data
sheet to Blackboard as a .doc, .docx or .rtf file when you are
finished.
Question 1. (30 points total) Use this balance sheet and income
statement from Carver Enterprises to complete parts a and b:
a. (15 points) Prepare a common size balance sheet for Carver
Enterprises. Complete the common-size balance sheet: (Round
to one decimal place.)
Common−Size Balance Sheet
2013
Cash and marketable securities

4. $
490
%
Accounts receivable
5,990
Inventories
9,550
Current assets
$
16,030
%
Net property plant and equipment
17,030
Total assets
$
33,060
%
Accounts payable
$
7,220
%
Short−term debt

5. 6,800
Current liabilities
$
14,020
%
Long−term liabilities
7,010
Total liabilities
$
21,030
%
Total owners’ equity
12,030
Total liabilities and owners’ equity
$
33,060
%
b. (15 points) Prepare a common-size income statement for
Carver Enterprises. Complete the common-size income
statement: (Round to one decimal place.)
Common−Size Income Statement

6. 2013
Revenues
$
30,020
%
Cost of goods sold
(19,950)
Gross profit
$
10,070
%
Operating expenses
(7,960)
Net operating income
$
2,110
%
Interest expense
(940)
Earnings before taxes
$
1,170

7. %
Taxes
(425)
Net income
$
745
%
Question 2. (10 points total) Use this data table of Campbell
Industries liabilities and owners' equity to complete parts a and
b.
a. (5 points) What percentage of the firm's assets does the firm
finance using debt (liabilities)? (Round to one decimal place.)
b. (5 points) If Campbell were to purchase a new warehouse for
$1.3 million and finance it entirely with long-term debt, what
would be the firm's new debt ratio? (Round to one decimal
place.)
Question 3. (10 points total) (Liquidity analysis)Airspot Motors,
Inc. has $2,433,200 in current assets and $869,000 in current
liabilities. The company's managers want to increase the firm's
inventory, which will be financed using short-term debt. How
much can the firm increase its inventory without its current
ratio falling below 2.1 (assuming all other assets and current

8. liabilities remain constant)? (Round to one decimal place.)
Question 4. (10 points total) (Efficiency analysis)Baryla Inc.
manufactures high quality decorator lamps in a plant located in
eastern Tennessee. Last year the firm had sales of $93 million
and a gross profit margin of 45 percent.
a. (5 points) How much inventory can Baryla hold and still
maintain an inventory turnover ratio of at least 6.3 times?
(Round to one decimal place.)
b. (5 points) Currently, some of Baryla's inventory includes
$2.3 million of outdated and damaged goods that simply remain
in inventory and are not salable. What inventory ratio must the
good inventory maintain in order to achieve an overall turnover
ratio of at least 6.3 (including the unsalable items)? (Round to
one decimal place.)
Question 5. (15 points total) (Profitability and capital structure
analysis)In the year that just ended, Callaway Lighting had
sales of $5,470,000 and incurred cost of goods sold equal to
$4,460,000. The firm's operating expenses were $128,000 and
its increase in retained earnings was $42,000 for the year. There

9. are currently 99,000 common stock shares outstanding and the
firm pays a $4.770 dividend per share. The firm has $1,180,000
in interest-bearing debt on which it pays 7.7 percent interest.
a. (5 points) Assuming the firm's earnings are taxed at 35%,
construct the firm's income statement.
Income Statement
Revenues
$
Cost of Goods Sold
Gross Profit
$
Operating Expenses
Net Operating Income
$
Interest Expense
Earnings before Taxes
$
Income Taxes
Net Income
$

10. b. (5 points) Calculate the firm's operating profit margin and net
profit margin. (Round to one decimal place.)
The operating profit margin is
%
The net income margin is
%
c. (5 points) Compute the times interest earned ratio.
The times interest earned ratio is
%
What does this tell you about Callaway's ability to pay its
interest expense? (Fill in the blank with the times interest
earned ratio from above and select the best choice.)
1) Callaway's operating income can fall as much as ______
times the interest expense and the company would still be able
to service its debt.
2) Callaway's interest expense is _______ times higher than its
competitors.
3) Callaway's gross profit can fall as much as ______ times and
still be able to service its debt.
4) Callaway's operating income can fall as much as ______
times and still be able to repay its debt.
Answer:

11. What is the firm's return on equity? (Select the best choice.)
1) The firm's return on equity is the same as the net profit
margin, 9.4%.
2) The firm's return on equity is the sum of the operating profit
margin and the net profit margin, 25.5%.
3) There is not enough information to answer this question.
4) The firm's return on equity is the same as the operating profit
margin, 16.1%.
Answer:
Question 6. (5 points total) (Market value analysis) Lei
Materials' balance sheet lists total assets of $1.16 billion, $132
million in current liabilities, $415 million in long-term debt,
$613 million in common equity, and 58 million shares of
common stock. If Lei's current stock price is $52.08, what is the
firm's market-to-book ratio? (Round to one decimal place.)
Question 7. (5 points total) (DuPont analysis)Bryley, Inc.
earned a net profit margin of 5.1 percent last year and had an
equity multiplier of 3.49. If its total assets are $109 million and
its sales are $157 million, what is the firm's return on equity?
(Round to one decimal place.)

12. Question 8. (15 points total) (Calculating financial ratios) Use
the balance sheet and income statement for the J. P. Robard
Mfg. Company to calculate the following ratios:
Current ratio (Round to two decimal places.)
Times interest earned (Round to two decimal places.)
times
Inventory turnover (Round to two decimal places.)
times
Total asset turnover (Round to two decimal places.)
Operating profit margin (Round to one decimal places.)
%
Operating return on assets (Round to one decimal places.)
%
Debt ratio (Round to one decimal places.)
%
Average collection period (Round to one decimal places.)
days
Fixed asset turnover (Round to two decimal places.)
Return on equity (Round to one decimal places.)

13. %
Online quiz 3
Questions 1-5 are multiple-choice questions. You can only
choose one answer to each multiple-choice question.
Questions 6-7 are essay questions about whistle-blowing.
Deadline: Thursday, November 8, 10 PM.
1. The agency that regulates safety and health issues on
workplaces is:
1. SHOA
2. HOSA
3. SAHO
4. OSHA
2. The doctrine of employment at will is:
1. A moral principle
2. A common law principle
3. A legitimate principle
4. A liberal principle
3. The following rule is a common law defense for employers in

14. case of accidents on workplaces:
1. The doctrine of negligence
2. The doctrine of contributory negligence
3. The doctrine of acceptable risk
4. None of these
4. It is possible to prosecute employers for homicide or
manslaughter in case of accidents on workplaces:
1. True
2. False
3. True if the employee has no contract
4. False if the employee has a contract
5. It is possible for employees to voluntarily accept any risk of
injury or even death:
1. True
2. False
3. True in the private sector, but not in the public sector
4. False in the private sector, but not in the public sector
6. Please discuss Davis’s comparison between the standard
theory and the complicity theory of whistle-blowing. You
should consider the following questions:
What is whistle-blowing? Why is whistle-blowing an issue?
What principles regulate whistle-blowing? Is his comparison
fair? Do the two theories have different ethical concerns? How
does Davis test the theories?
7. Explain briefly why Duska does not believe that we need to
justify whistle-blowing.