please read the case study and answer question 2, and 3. thank you.

Major Case 3 - Kiley Nolan's Ethical Dilemma (a GVV Case) South City Electronics involved in printed circuit board assembly (PCBA) dealing with the assembly of complex electronic system processes. The equipment is sold to a variety of customers throughout the United States and abroad. The electronics company based in the city of South San Francisco, is publicly owned. Josh Goldbere is the chief executive officer of the company, David Levin is the chief financial officer It's March 30, 2019, and Riley Nolan, controller for South City Electronics, has just gotten off the phone with her supervisor, South City's CFO David Levin, who trated the points he made in a free to face meeting with her earlier that day that the company would be in default on a $10 million loan if its cash flow and earnings for the ended March 312019. did not meetse poolt in the loan agreement At that date, the company's cash flow was $920.000 and the earnings were 8160.000. This $380,000 and $240.000, respectively, below prescribed levels Olmore knew her bo wanted her to aeree to immediate revenue treatment for the transaction described below The Transaction South City transferred title to equipment sold to Victor System on March 29, 2019 the date of delivery on a 16 million sale The arrangement allowed for the transfer of nitie upon delivery to Victor site, as had occurred. However customer Seite acceptance provisions permut the customer to return the equipment there satisfies certain performance fests, South City cannot detonstrate that at the time of delivery, the equipment already met all the criteria and specifications in the custom specific acceptance provision. The arrangement also called for the vendor to perform the installation South City also provides technical support for the installation and of the equipment Boine forward Kiley is onzine about what she should do. She bele it would be wrong to record the transaction are in the first quarter of 2019 und GAAP and the recently adopted FASB revenue recognition standard. Recom Contact with Custom However she is under a weat deal of pressure to do so Lehet bote took the position that the conditions under which the customer intends to operate the equipment were replicated in present testine Kiley Kw however that the performance of the equipment, once installed and operated at the customer's facility may reasonably be different from that tested prior to thipatent 2. Suppose you are Kiley Nolan and prepare for your meeting with David Levin tomorrow. Consider yourself in the role of Kiley Nolan and answer the following: Was I right to hesitate and ask for a second meeting with David to buy more time? Or did that weaken my position? Mention concepts you learned in the textbook or other assigned readings to support this answer. Fill out the table below with the main arguments that David is likely to bring up your corresponding main counter-arguments, and any additional comments you may have. In the role of Kiley, fill out this table carefully to help remember what to say at the meeting with David tomorrow: David's arguments Kiley's counterarguments Comments 1. 2. 3. 3. Nolan may use several powerful levers in this case, including bringing her concerns to others higher in the organization or outsiders. What would be her most convincing argument if she discussed the $1.6 million revenue with the: CEO Audit committee of the Board of Directors External auditors Securities and Exchange Commission