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please help with these three questions thank you ! Webb Electronics sells game consoles. The company has been extremely successful in recent years, but COVID
please help with these three questions thank you ! Webb Electronics sells game consoles. The company has been extremely successful in recent years, but COVID did take a toll on its sales starting in 2020. In June 2022, Jay, the company's accountant, examined their inventory reports and was surprised to find that their 2020 consoles (Hayden 2020 GS) had not changed since December 2021. He discussed his findings with the inventory manager who indicated that the sales of the Hayden 2020 GS have been falling since 2020 , and none had been sold in 2022, because a newer console, the Hayden 2022 GZ was released in January 2022. Jay researched this issue further and found that the Hayden 2022 GZ has the same applications as the older model, but has more processing power, better graphics, and a lower cost than the 2020 model. Jay emailed this information to Charles Sheen, the Chief Financial Officer, and recommended that the company apply the lower-of-cost-or-market method to the Hayden 2020 GS game consoles in inventory. Later that day, Charles emailed Jay and told him NOT to apply the lower-of-costor-market valuation to the Hayden 2020 GS inventory because "the company is under considerable pressure to maintain its track record of earnings growth, and a lower-of-cost-or-market adjustment would result in a significant decline in earnings this quarter." Because Charles was Jay's boss, he followed his instructions. 1. Who could be harmed by this decision? Why? 2. Who could benefit from this decision? Why? 3. Are there any ethical considerations by Jay or Charles' actions? If so, discuss
please help with these three questions thank you !
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