M. K. Gallant is president of Kranbrack Corporation, a company whose stock is traded on a national exchange. In a meeting with investment analysts at the beginning of the year, Gallant had predicted that the company's earnings would grow by 20% this year Unfortunately, sales have been less than expected for the year, and Gallant concluded within two weeks of the end of the fiscal year that it would be impossible to ultimately report an increase in earnings as large as predicted unless some drastic action was taken Accordingly. Gallant has ordered that wherever possible, expenditures should be postponed to the new year--inch canceling or postponing orders with suppliers, delaying planned enhance and training, and cutting back on enjoyer advertising and travel, Additionally, Gallant ordered the Pany's controller to carefully scrutinize al costs that are c classified as period costs and reclassify as many as possible as product costs. The company is expected to have substantial inventories at the end of the year. What are the ethical considerations in this case? Why would reclassifying period costs as product costs increase the period's reported earnings? Do you believe Gallant's actions are ethical? Why or why not? Address consequences and ethical considerations for each proposed action separately