Analysis of Resources Unlimited Corporation

1. Analysis of Resources Unlimited Corporation Case Study By Debra Hansel MSM 630

2. Table of Contents • Company History • Baseline Profits for 1986-1988 • Gas and Oil Accounts • Accountant’s Salaries • Hedge Funds/Bankruptcy • Salary to Avoid Discrimination Lawsuit • Conclusion

3. Company History • Formed in 1985 through a merger of two natural pipeline companies • Largest gas distribution network in the U.S. • 38,000 miles of pipeline • Spans from Southwest and Mountain states through Northeaster and Midwestern regions • Industrial and residential users

4. 1986-1988 Quarterly Profits • As you can see from the chart, quarterly profits for the two years presented had a huge variation between years from one quarter to the next

5. Gas and Oil Accounts

6. Accountant’s Salaries • Male 1 = $50,000 • Male 2 = $52,000 • Male 3 = $55,000 • Female 1 = $32,000 • The average pay for all accountants is $47,250. To bring the female employee into the same category of pay and avoid a lawsuit, they would need to raise her pay at least $15,000

7. Hedge Funds/Avoiding Bankruptcy • The president was transferring gas accounts into dummy hedge funds to lessen cash demands • Had Senior management listened to the accounting and strategic planning departments, they could have dwindled accounts to maintain cash flow

8. Change in Salaries • In order to eliminate any additional discrimination lawsuits, the company would need to do a salary analysis to make sure that all employees performing the same work are paid equally.

9. Conclusion • The corporation management style is each one for himself and needs to be redesigned • Accounting practices need to be examined and audited • The current profit structure needs to be restructured • The lines of communication need to be open between all corporate management