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can i get help CRITICAL THINKING Ethical Issue 26-1 Spencer Wilkes is the marketing manager at Darby Company, Last year, Spener recommended the company approve
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CRITICAL THINKING Ethical Issue 26-1 Spencer Wilkes is the marketing manager at Darby Company, Last year, Spener recommended the company approve a capital investment project for the add ion dia s for product line. Spencers recommendation included predicted cash infn years from the sales of the new product line. Darby Company has been selli products for almost one year. The company has a policy of conducting annual audits on capital investments, and Spencer is concerned about the one-year pot-z because sales in the first year have been lower than he estimated. However, sales been increasing for the last couple of months, and Spencer expects that by the end d ng the re pos ar pou-ad end of the scond year, actual sles will aced his estimates for the first two years combine he second year, actual sales will exceed his estimates for the first two ject into Spencer wants to shift some sales from the second year of the pro first year. Doing so will make it appear that his cash flow With accurate estimates, he will be able to avoid a poor performance evaluation. Spencer has discussed his plan with a couple of key sales representatives, urging then to report sales in the current month that will not be shipped until a later mondh Spencer has justified this course of action by explaining that there will be no effect the annual financial statements because the project year does not coincide with te fiscal year-by the time the accounting year ends, the sales will have actually occumd Requirements predictions were accurate 1. What is the fundamental ethical issue? Who are the affected parties? If you were a sales representative at Darby Company, how would you respona Spencer's request? Why? ld you respond w 3. If you were Spencers manager and you discovered his plan, how would you 4. Are there other courses of action Spencer could take? aud Case 26-1 John Johnson is the majority stockholder in Iehnson's L respond
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