Mr. X, the owner of XYZ Company, is having some cash flow problems. He is unable to take discounts on inventory and, in fact, is having trouble paying his inventory invoices as they become due. The XYZ Company maintains its inventory using the perpetual inventory system and the net price method. Mr. X wants to switch to the periodic inventory systems and the gross price method because he believes that doing so will make his balance sheet look better. Is it ethical and/or logical for XYZ Company to make this switch? Why or why not?