IV. Sound Company is in the business of manufacturing high quality violins. In the last couple of years, the company has been going through working capital problems because of unexpected building up of receivables and inventories, and the payment of a mortgage on a factory building. Nigel Arch, the president of the company, has tried hard to borrow cash from banks. However, his attempts have failed due to his company's weak performance. In order to persuade banks, Nigel Arch decided to improve the company's statement of cash flows. He planned to generate cash by selling the company's accounts receivables to factors and liquidating raw material inventories. Required: Explain thoroughly what you think of this plan. In your explanation, discuss the ethical matters related with the plan and present your own ideas about improving the company's cash flow issues. (20 pts)