If you were the president of a large publicly owned corporation, would you make decisions to maximize stockholders’ welfare or your own personal interests?

What are some actions stockholders can take to ensure that management’s interests and those of stockholders coincided?

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What are some other factors that might influence management’s actions?

Hike n’ Run Company has decided to produce 288,000 pairs of socks at a uniform rate throughout 2010. The sales department of Hike n’ Run has estimated sales for 2010 according to the following schedule:QuarterSales of pairs of socksFirst Quarter76,800Second Quarter62,400Third Quarter72,000Fourth Quarter100,800Total312,000Assume the 2009 December 31, inventory is estimated to be 38,400 pairs of socks.


Prepare a schedule of planned sales and production for the first two quarters of 2010.


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