Horizon Corporation manufactures personal computers. The company began operations in 2016 and reported profits for the years 2016 through 2019. Due primarily to increased competition and price slashing in the industry, 2020 's income statement reported a loss of $20 million. Just before the end of the 2021 fiscal year, a memo from the company's chief financial officer to Jim Fielding, the company controller. included the following comments: If we don't do something about the large amount of unsold computers already mamyfactured, our auditors will require us to write them off The resulting lass for 2021 will cause a violation of our debr covenants and force the company into banknuptey. I sugecst that you ship half of our inventory to J.B. Sales, Ine, in Oklahima City. I know the company's president and he will accept the merchandise and acknowledge the shipment as a purchase. We can record the sale in 2021 which will boost profits to an acceptabic lovel. Then J.B. Sales will simpty return the merchandise in 2022 after the financial stakements have been issued. Read Chapter 6 in your textbook. - Read the ethical dilemma presented in Ethics Case 6-4 regarding Horizon Corporation on p. 332 of the textbook and answer the following questions for this discussion forum assignment: - What are the possible negative consequences of this plan? - Is it ethical to record the sale of computers in year 2021 and then return the computers in year 2022 ? - Why or why not? - Use Biblical principles to support your position. Horizon Corporation manufactures personal computers. The company began operations in 2016 and reported profits for the years 2016 through 2019. Due primarily to increased competition and price slashing in the industry, 2020 's income statement reported a loss of $20 million. Just before the end of the 2021 fiscal year, a memo from the company's chief financial officer to Jim Fielding, the company controller. included the following comments: If we don't do something about the large amount of unsold computers already mamyfactured, our auditors will require us to write them off The resulting lass for 2021 will cause a violation of our debr covenants and force the company into banknuptey. I sugecst that you ship half of our inventory to J.B. Sales, Ine, in Oklahima City. I know the company's president and he will accept the merchandise and acknowledge the shipment as a purchase. We can record the sale in 2021 which will boost profits to an acceptabic lovel. Then J.B. Sales will simpty return the merchandise in 2022 after the financial stakements have been issued. Read Chapter 6 in your textbook. - Read the ethical dilemma presented in Ethics Case 6-4 regarding Horizon Corporation on p. 332 of the textbook and answer the following questions for this discussion forum assignment: - What are the possible negative consequences of this plan? - Is it ethical to record the sale of computers in year 2021 and then return the computers in year 2022 ? - Why or why not? - Use Biblical principles to support your position
