Ethics - It's just a tip, isn't it? Arlene Barry had just left the most recent board meeting of Panda Toy Manufacturing. Artene served as Chairman of the Board and was also a majority stockholder in the business. Panda Toy Manufacturing had just learned that the company was being sued by a multinational retail toy store for failure to use flame-retardant filling in its stuffed panda bears. Arlene knew that the business had been cutting costs and had intentionally used filling that was not up to appropriate standards. She was sure that the Panda Toy would lose the lawsuit and knew that the value of her stock would drop considerably Arlene was considering quickly selling her stock before the lawsuit became public knowledge. What should Arlene do? What would you do? (Post a response) Ethics in Action Financial assets include stocks and bonds. These are fairly simple securities that can often be valued using quoted market prices. However, there are more complex financial Instruments that do not have quoted market prices. These complex securities must still be valued on the balance sheet at fair value. Generally accepted accounting principles require that the reporting entity use assumptions in valuing investments when market prices or critical valuation inputs are unobservable. 1. What are the ethical considerations in making subjective valuations of these complex financial instruments PyPost your response) Our Mer 13 Decisions - Should the Business purchase more stock? Bath Corporation currently owns 15% of Body Co. Bath has the opportunity to purchase additional shares of stock in Body Co, which would bring Bath's ownership percentage to 25%. Bath Corporation is considering the investment because the purchase would allow Bath Corporation to have some Influence over Body Co, but Bath is not sure about the accounting implications. What should Bath do? (Post a response and