Review the “You Call It” on page 285, which illustrates an ethical challenge associated with purchase discounts.

Required

1. In your view, is the company currently abusing its suppliers’ cash discount policy? Explain.

2. Is it appropriate to indicate that the late payments are due to computer or mail problems? Explain.

3. Assume you feel uncomfortable with your company taking the suppliers’ cash discounts. What steps could you take to remedy the situation?