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2 (20 Marks) Thembi Thandi, owner of Thandi Cleaners, drive-through dry cleaners, would like to expand her business from its current location to a chain

2 (20 Marks) Thembi Thandi, owner of Thandi Cleaners, drive-through dry cleaners, would like to expand her business from its current location to a chain of cleaners. Revenues at the one location have been increasing at an average of 8% per quarter. Profits have been increasing accordingly. Thembi is conservative in spending and is a very hard worker. She has an appointment with a banker to apply for a loan to expand the business. To prepare for the appointment, she instructs you, as chief financial officer and payroll clerk to copy the quarterly income statements for the past two years but not include a balance sheet. Thembi already has a substantial loan from another bank. In fact, she has very little of her own money invested in the business. Required: 1) What is the ethical dilemma in this case? Who would be affected and how would they be affected if you follow Thembis instructions? (5) 2) What responsibility do you have in this situation? (5) 3) If the banker does not receive the balance sheet, will he have all of the relevant information needed for decision making? Why or why not? (4) 4) Will the information provided by Thembi be neutral? (2) 5) What should you do? Might someone be harmed by Thembis accounting decision? Explain. (4)

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