Ethical Issue 16-1
Moss Exports is having a bad year. Net income is only $60,000. Also, two important overseas customers are falling behind in their payments to Moss, and Moss's
Requirements
- Using only the amounts given, compute net cash provided by operations, both without and with the reclassification of the receivables. Which reporting makes Moss look better?
- Under what condition would the reclassification of the receivables be ethical? Unethical?
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Horngren's Accounting (12th Edition)
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