Glenn's Cleaning Services is experiencing cash flow problems in its first year of business and needs a loan. Glenn has a friend who is willing to lend him the money he needs provided she can be convinced that he will be able to repay the debt. Glenn has assured his friend that his business is viable, but his friend has asked to see the company's financial statements. Glenn's accountant produced the following financial statements. Glenn's Cleaning Services Income Statement For the year ended December 31, 2020 Service Revenues $28,000 Operating Expenses (50,000) Net Loss $(22,000) Glenn's Cleaning Services Balance Sheet As of December 31, 2020 Total Assets $75.000 Liabilities $35,000 Equity: Common Stock $62,000 Retained Earnings ($22.000) Total Equity $40,000 Total Liab & Equity $75.000 Glenn knows that his friend is risk adverse and may not loan him money based on these financial statements. Before showing these financial statements to his friend, Glenn decided to add $30,000 in revenue on account from Barrymore Manufacturing for a contract to clean its headquarters office building that was still being negotiated for the next month. Glenn was sure he would get the Barrymore job. Barrymore was a reputable company, so he was also sure that he would collect the $30,000. Part A: Reconstruct the income statement (6 points) and balance sheet (6 points) after the revenue adjustment made by Glenn. Part B: Was Glenn's decision to change the financial statements ethical? Why or why not? For full credit, review his decision in terms of the three components of the fraud triangle. (10 points) Part C: How could Glenn have handled this situation differently and still secured a loan from his friend? (3 points)