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You are the Controller for Springtime Bottling Company, a private company. Your company has a large loan from an insurance company. The loan agreement
You are the Controller for Springtime Bottling Company, a private 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 $200,000 or more, as reported monthly. The company's fiscal year end is June 30th. At June 30 the true cash balance is $80,000, which you report to Anne Shirley, the President. Anne excitedly instructs you to keep the cash receipts book open for one additional day for purposes of the June 30 report to the insurance company. Anne says, "If we don't get that cash balance over $200,000, we'll default on our loan agreement. They could close us down, put us all out of our jobs!" Anne continues, "I talked to Oconto Distributors (one of Springtime's largest customers) this morning. They said they sent us a check for $150,000 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!" What do you do? Requirement #2: Answer the below questions for ethical dilemma #1 or #2 based on your last name: Using bullet points is an appropriate way to answer the question. What are the facts? What are the alternatives and consequences? Who is impacted by the situation and considered the stakeholders? Which alternative do you favor and why?
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