STATEMENT OF THE PROBLEM Star River Electronics Ltd. is a large manufacturer and supplier of CD-ROMS. It was founded as a joint venture between New Era Partners and Starlight Electronics Ltd. It has enjoyed a great deal of success in the past decade, due in large part to their excellent reputation. Star River does need to address several issues with the recent resignation of their former CEO. Digital Video Disks are expected to cut into …
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…causing this discrepancy. Lastly, in one of their balance sheet predictions, their total assets did not equal liabilities plus shareholder's equity, which is obviously a problem. If they had properly reviewed their handouts before they submitted them, they would have noticed this problem. Again, we do think group four did a good job of addressing the main problems this course presents, we just think they should have spent more time verifying some of their calculations.