Reference no: EM132772493

Assume you are the controller for Greenfield's Landscaping Company. Greenfield's has a long successful history and employs 150 people. The company is generally well managed, employees are happy, and pay levels are adequate for employees to support their families. Business has been slow due to a downturn in the economy and profits have dropped off. The company applies for a working capital loan each year to provide cash during the slow winter months, and then repays the loan during the busy spring and summer season. You have expressed concern to the company president that the bank may not be willing to approve a working capital loan due to the company's declining profits.

• The company president indicates that without the loan it will be necessary to lay off 60 good employees until business picks up. He asks you to make the profits appear higher to ensure that the bank will approve the loan. You recognize that manipulating the financial statements will create the most happiness for these 60 employees and their families, but you recognize that there may be other drawbacks to this decision.

From the case above of Greenfield's Landscaping:

Problem a. What factors would you consider in making this decision?

Problem b. Using only the principle of utility, what decision would you make?

Problem c. Consider the principle of justice, how would this change your decision?