I need help with two questions. Please see attachment.

Lindsey Contractors' borrowing agreements make certain demands on the business. Lindsey's LongTerm Debt may not exceed Stockholder's Equity, and the current ratio may not fall below 1.50. If Lindsey fails to meet this requirement, the company's lenders can take over management of the corporation. Current Liabilities have mounted faster than current assets, causing the current ratio to fall to 1.47. Before releasing financial statements, Lindsey management is scrambling to improve the current ratio. Th controller points out that an investment can be classified as either longterm or shortterm, depending on management's intention. By deciding to convert an investment to cash within one year, Lindsey can classify the investment as shortterm a current asset. On the controller's recommendation, Lindsey's board of directors votes to reclassify longterm investments as shortterm. 1. Do you think that the actions taken by Lindsey's controller and board of directors are ethical. Why or why not? 2. Shortly after the financial statements are released, sales improve and so does the current ratio. As a result, Lindsey management decides not o sell the investements it had reclassified as short term. Accordingly, Lindsey reclassifies the investments as longterm. Has management behaved unethically? Why or why not