Rowe Long Version Essays

Submitted By xaccountingx
Words: 2871
Pages: 12
Open Document
Case No. 98-05: Rowe Pottery Works Inc. ◆ 1

AICPA Case Development Program

ROWE POTTERY WORKS, INC.

Brian W. Mayhew, Assistant Professor
Georgia State University, Atlanta, Georgia
Gary G. Mayhew, Controller
Rowe Pottery Works, Inc., Cambridge, Wisconsin

At the end of 1996, Rowe Pottery Works, Inc. (RPW) had been losing money for over two and a half years
(see table 1).This case challenges students to identify and evaluate alternatives that lead to Rowe's return to profitability.RPW's pottery operation is the main source of the losses.The pottery operation provides a majority of the company's revenue leading the company to depend heavily upon its success. Attempts to control costs have reduced but not eliminated the continued losses. The losses perplex the company's president as he believes there is a strong market for RPW's products.
Management recently hired a new controller but is skeptical whether or not an accountant can help turn the company around. The previous controller told the president on numerous occasions: "I just report the results."
Nonetheless, the president hopes the new controller can help find a way to return the company to profitability.
COMPANY HISTORY
Jim and Tina Rowe purchased a historic blacksmith shop in 1975. They turned it into an antique shop and soon discovered there was quite a demand for 19th-century salt-glazed pottery. Jim studied art in college and was familiar with the salt-glazed technique. He and Tina began producing handmade salt-glazed pottery and selling it in their store. As demand grew, the Rowe’s began selling their pottery to gift shops across the country. Today RPW sells more salt-glazed pottery than any other producer in the country.
RPW also operates a retail store and a wholesale decorative ironworks business. The focus of this case is on RPW’s salt-glazed pottery business. Information about the store and iron works has been removed from the financial data presented.
THE PRODUCT
The company’s main product is salt-glazed pottery. Skilled artisans hand-make a majority of the pottery at a potter’s wheel. After forming, workers allow the pieces to air dry, then add a protective glaze and decoration before firing the pieces in a kiln. Salt added during the firing process produces a blue and gray color with unique “kiln” spots of brown and orange. The decorative and useful pottery is dishwasher, microwave, and oven safe. Products include crocks, plates, mugs, lamps and Christmas ornaments.
Artists decorate the pottery with traditional cobalt blue glaze prior to firing. Simple standard designs such as hearts, stars and blueberries adorn the pieces. Hand decorating also allows the production of cusCopyright 1999 by the American Institute of Certified Public Accountants (AICPA). Cases developed and distributed under the AICPA Case
Development Program are intended for use in higher education for instructional purposes only, and are not for application in practice.
Permission is granted to photocopy any case(s) for classroom teaching purposes only. All other rights are reserved. The AICPA neither approves nor endorses this case or any solution provided herein or subsequently developed.

AICPA Case Development Program

Case No. 98-05: Rowe Pottery Works Inc. ◆ 2

tomized pottery. For example, throughout the wedding season, customized wedding crocks decorated with the names of the bride and groom and their wedding date enjoy steady demand.
RPW also sells pottery especially designed for the Christmas season. The holiday line includes plates and crocks decorated with painted Christmas scenes and symbols, as well as Christmas ornaments and figures. The company prides itself in developing a few unique pieces each Christmas season. RPW’s artists date stamp their work to ensure authenticity and enhance collectibility.
PRODUCTION
Overview of the production process:
Step 1. Workers combine clay with water and ice in a large mixer.
Step 2. Potters form each piece on a potter’s wheel.
Step 3.
Show More

Related Documents: Rowe Long Version Essays

Public Forum Debate Case Essay

Biocentric approaches towards policies entrench the human-environmental dualism further Paterson 6 (Barbara, Red Orbit, Avian Demography Unit, Department of Statistical Sciences, University of Cape Town in South Africa, Ethics for Wildlife Conservation: Overcoming the Human-Nature Dualism, 3/1/06, http://www.redorbit.com/news/science/410448/ethics_for_wildlife_conservation_overcoming_the_humannature_dualism/#uOkeloY9LSY3hiby.99) The existence of intrinsic value in nature, on the other hand, would…

Words 3673 - Pages 15

Herman Melville's Redburn-Analytical Essay

life of ease and privilege but whose life takes a sharp turn with the bankruptcy and death of his father at a young age. This story has become known as a semi-autobiographical story of Herman Melville. Melville, whose character Redburn was a looser version of himself, was also the son of a deceased father. His Redburn’s future is unknown and undetermined post death of his beloved father. He struggles, as all children would move into the age of adolescence and into the portion of his existence where…

Words 2522 - Pages 11

Globalisation Of Sport Essay

This article was downloaded by: [University of Canterbury] On: 06 March 2015, At: 01:29 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK The International Journal of the History of Sport Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/fhsp20 The Globalization of Sports, the Rise of Non-Western Nations, and the…

Words 6073 - Pages 25

What Are The Dumbest Things In Life

Eddie’s Fetishes Pg 16 As a child, there were a lot of thing I really enjoyed doing. So many things, it's makes sad because I wish I could still be doing the things I once loved doing. Its part of life, as you get older. Things start changing in your life, you start doing new things and those new things become your new habits. I remember looking back and just doing the dumbest thing ever with my friends, thats whats makes the memories in life. The bad things in life are the one that make great…

Words 2014 - Pages 9

Technology And Discourse Essay

concern in light of evidence that organizations are becoming increasingly reliant upon technology-based selection processes, in order to reduce recruitment costs and to maximize the geographic size and diversity of their applicant pool (Chapman and Rowe, 2001, 2002; Kroeck and Magnussen, 1997). Although there has been interest in the use of videoconferencing for selection, in reality videointerviews are still comparatively rare (Burkitt, 1991; Coady et al., 1996). Indeed, the most prolific use of…

Words 6948 - Pages 28

Michael jackson Essay

For his legions of fans, he was the Peter Pan of pop music: the little boy who refused to grow up. But on the verge of another attempted comeback, he is suddenly gone, this time for good. LOS ANGELES — For his legions of fans, he was the Peter Pan of pop music: the little boy who refused to grow up. But on the verge of another attempted comeback, he is suddenly gone, this time for good. Multimedia Slide Show Michael Jackson’s Career Interactive Feature Michael Jackson’s Legacy: Readers…

Words 3007 - Pages 13

Essay on king lear

Summary Gloucester sets out to find food, leaving the king and his party in a farmhouse next to the castle. The Fool and Edgar take part in Lear's mock trial of Regan and Goneril. Gloucester enters and reveals that he has learned of a plot to kill the king. The group prepares to take Lear to Dover, where friends can come to his aid. Analysis Edmund's gibberish about foul fiends certainly fits both Edgar and Lear's circumstances, since both have been victims of deceit and wickedness. Once they…

Words 5002 - Pages 21

Technical Data Corporation Essay

market traders. For example, one service provided by TDC was an analysis of yield spreads on government securities of different maturities (e.g., the difference between the yield available on a short-term treasury bill and the yield to maturity on a long-term government bond). A description of the basic product is contained in Exhibit 1. LA D C us to Parker left Fidelity in late 1980 to form TDC. The business plan called for the company to develop an information analysis system for sale…

Words 7904 - Pages 32

Advancing Equity In Clinical Preventive Services

Journal of Communication ISSN 0021-9916 ORIGINAL ARTICLE Advancing Equity in Clinical Preventive Services: The Role of Health Communication Kenzie A. Cameron1,2,3,4 1 Division of General Internal Medicine and Geriatrics, Department of Medicine, Feinberg School of Medicine, Northwestern University, Chicago, IL 60611, USA 2 Robert H. Lurie Comprehensive Cancer Center of Northwestern University, Chicago, IL 60611, USA 3 Institute for Public Health and Medicine, Feinberg School of Medicine…

Words 9218 - Pages 37

Corporation (Fisch) Outline Penn Law Essay

Table of Contents I.) INTRODUCTORY PRINCIPLES 2 A.) Efficiency and Other Concepts 2 B.) Agency and Partnership Law 2 II.) INTRODUCTION TO THE CORPORATE FORM 16 A.) Formation and Structure 16 B.) Debt, Equity, and Valuation 22 III.) CONTROL OF CORPORATE DECISIONS 32 A.) The Role of the Shareholder 32 B.) Management Obligations 50 1.) Duty of Care 51 2.) Duty of Loyalty 56 3.) Duty of Fairness: Parent-Subsidiary Relationships 63 4.) Duty of Good Faith 64 5.) Management Obligations…

Words 62789 - Pages 252