Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Scenario: You are the assistant controller in charge of general ledger accounting at Linbarger Bottling Company. Your company has a large loan from an insurance
Scenario:
You are the assistant controller in charge of general ledger accounting at Linbarger Bottling Company. Your company has a large loan from an insurance company. The loan agreement requires that the company's cash account balance be maintained at $ or more, as reported monthly.
At June the cash balance is $ which you report to Lisa Infante, the financial vice president. Lisa excitedly instructs you to keep the cash receipts book open for one additional day for purposes of the June report to the insurance company. Lisa says, If we don't get that cash balance over $ we'll default on our loan agreement. They could close us down, put us all out of our jobs!" Lisa continues, "I talked to Oconto Distributors one of Linbarger's largest customers this morning. They said they sent us a check for $ yesterday. We should receive it tomorrow. If we include just that one check in our cash balance, we'll be in the clear. It's in the mail!"
Based on the above scenario, please write a paper answering the following questions:
What is the ethical dilemma in this scenario?
Who are the stakeholders in this scenario and what are their responsibilities and obligations of the parties involves?
What are the opportunities, rationalizations, and pressures incentives involved in this scenario?
What are the alternatives and the respective consequences of each alternative?
What alternative would you select and why?
How does your role as a Christian businessperson influence your decision?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started