Wonderful Company (WC) is a multi-national company with its main business in high-tech products such as personal computers, laptops, workstations, smartphone (called "xphone"), computer accessories, etc. The business is finishing its tenth year of operations. It has grown unexpectedly fast during the past 5 years, mainly because of the "xphone", which is the most commonly used smartphone in the world. David Chan (DC) is the new Chief Financial Officer (CFO) of WC. He has been appointed on a five-year term. He is preparing for a meeting with the United Happy Bank (UHB) regardingWC's financial situation. Due to the financial tsunami last year, WC had negative operating cash flows. In this year, it seems that improvement is not forthcoming. So, DC is trying to think about how to get an increase in cash flows for the coming years. In the first and second years since establishment, cash flow from operations was negative. But after those periods, cash flow has continually been improving to positive until last year which was the tenth year and also the year of the financial tsunami. Also inventory costs rose significantly in last year, and cash flows from operations will probably be down by 38%. DC wants to secure a line of credit from the UHB as a financial buffer and to obtain an additional bank loan for developing new projects. From experience, he knows that the UHB will scrutinize operating cash flows for the last five years especially the last year, and will require him to prepare a projected cash flow from the current year to the next five years. David knows that a steady progression upward in operating cash flows for the period will help this case a lot. He decides to use his discretion as CFO and considers several business actions that will turn the operating cash flow of WC in this year from a decrease to an increase and keep it increasing over next five years. Peter Leung, who is the Managing Director of WC, talked with David during their dinner at a hotel restaurant. He implied to David that that information prepared to the UHB is only some management forecasts which are unaudited. He further emphasized to David that as a professional accountant, he should have the ability to do some "window dressing" in order to provide a positive and favorite cash flow forecast for the bank. Required: (1) Identify the ethical issue(s) involved in this case? (2 mark) (2) Who are the stakeholders and how are each of them affected? (8 mark) (3) What are the feasible alternatives to David? (5 mark) (4) What course of action will you suggest David to take and why? (5 mark)