You Just Got Hired to Do Accounting for Starlight Espresso,which

Essay

You just got hired to do accounting for Starlight Espresso,which is a boutique coffee production company.The owner approaches you and says that he's concerned about the crops this year,because he heard that many of them could be ruined because of a disease affecting the shrubs this year.If the supply is limited,he fears prices will go up; however,he said a friend of his told him he should look into futures contracts.He would like you to find out if this can help save the company money,and also explain to him what a futures contract is.Eager to impress the owner,you decide to put your accounting research skills to use.How would you approach the first two steps of the research process given the information in this problem?