Class 5-Case 1 Case Details: The president of a company whose stock is traded on a national exchange held a meeting with investment analysts at the beginning of the year. The president had predicted that the company's earnings would grow by 20% this year. Unfortunately, sales have been less than expected for the year, and the Company concluded within two weeks of the end of the fiscal year that it would be impossible to ultimately report an increase in earnings as large as predicted unless some drastic action was taken. The president has ordered that wherever possible, expenditures should be postponed to the new yearincluding canceling or postponing orders with suppliers, delaying planned maintenance and training, and cutting back on end-of-year advertising and travel. Additionally, the president ordered the company's controller to carefully scrutinize all costs that are currently classified as period costs and reclassify as many as possible as product costs. The company is expected to have substantial inventories at the end of the year. Required: Analyze the impact of the president's actions on the company's results? What concerns are raised by the president's actions? Discuss the ethical issues arising out of the president's decisions