Milton Manufacturing Company produces a variety of textiles for distribution to wholesale manufacturers of clothing products. The company's primary operations are located in Long Island City, New York, with branch factories and warehouses in several surrounding cities. Milton Manufacturing is a closely held company, and Ire Milton is the president. He started the business in 2008, and it grew in revenue from $500,000 to $5 million in 12 years. However, the revenues declined to $4.5 million in 2020 Net cash flows from all activities also were declining. The company was concerned because it planned to borrow $20 million from the crodin markets in the fourth quarter of 2021 Irv Milton me with Ann Plotkin, the chief accounting officer (and also a CPA on January 15, 2021, or discuss a proposal by Pikin to cost cash outflows. He was not overly concerned about the recent decline in net cash Bows from operating activiti because these amounts were expected to increase in 2021 as a result of projected higher levth of revenue and cash collections However, that was not Plokin's view Poin knew that fall negative capital penditures continued to increase at the rate of 4 percent per year M Manelictaning probably would not be able to hornow the $20 million There, she suggested establishing a new policy to be sided on a temporary basis. Each plant's capital expenditures f 2021 resting activities would be limited to the level of these capital expenderes in 2015, the last year of an overall ponte cash low Opening activity cash fo estrictions In Milton pointedly asked Path shot the possible negative fuch a plic but in the end he was cond Summary of Cash Flowy For the Years Ended December 31, 2020 and 2019 (000) Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash provided by operating activities Net cash provided by operating activities Cash Flows from lavesting Activities December 31, 2020 December 31, 2019 $ 372 (2.350) S(197) $ 547 51341) Capital expenditures Other investing inflows (outflows) 5(1420) 176 S(1,344) 5(1993) 34 SCUSHI $ LAN K2199) Net cathosed in tavesting activities Cash Flows from Financing Activities Net cash provided (used is financing activities Increase (decrease) in cash and chalets Cash and cash equivalents-beginning of the year Cask and cal equivalents-end of the year $ 168 $3,054) $1191 $ 147 The S PIC COLLAGE Please read Case 2-7 from your textbook and answer the following questions: 1. Identify the ethical and professional issues of concern to Beverly Wald and Ann Plotkin. 2. Identify and evaluate alternative courses of action using ethical reasoning.