Assume that you are the controller of a publicly held company called Spring Corporation.The CEO and the CFO are quite concerned about financial analysts’

assessments of Spring’s prospects.Analysts have publicized their doubts about Spring’s ability to generate cash from operating activities.

As is common, Spring pays for all of its inventory purchases almost immediately upon receipt of the appropriate bills. Because finance charges in this industry are exorbitant, you, as controller, are careful to make all payments within the allowable interest-free period.At year end, the CFO orders you to suspend temporarily all payments to suppliers.The obvious reason for this suspension is to enhance, that is to “window dress,” Spring’s CFOA in its statement of cash flows. It is also obvious that this action will cost Spring substantial future interest charges.

Required Write a short response to the CFO’s request.