Question 1 Mary said, "The bank won't give us a Line of Credit. They say our sales are too low." John said, "ABC said they would buy $200,000 worth of stuff from us in January. Why don't I just log in the sale now? It would increase our sales and we would get the loan." If the company did what john suggested, what two things might happen? Putting $200,000 extra on this year's income statement would reduce next year's income. The decrease in income might cause the bank to withdraw their line of credit. (2) Putting $200,000 extra income on the income statement would cause them to pay more income tax. * It would be easy to make loan payments. a) It would increase the ethical standards of the company. Question 2 -10.5 The company signed a contract with the State of Texas. Texas agreed to pay the salaries of three people including two weeks of vacation for each employee. There's 52 weeks in a year so that means Texas would pay for 50 x3 150 weeks of work and 3 x 2-6 weeks of vacation. John had already used up his two weeks of vacation when his son was in an auto accident and needed an operation. Mary said, "I'll work an extra week for free and let john have one of my weeks of vacation so he can go be with his son." Is this ethical? yes no