A Framework for Ethical DeciYou are the Controller for a small company called Widgets Are Us (hereafter referred to as WAU). The company manufactures component parts for large heavy equipment manufacturers. The company is a closely held corporation with the stock owned by 4 siblings and with the oldest brother holding the largest share of stock (70%) and the other 3 siblings holding 10% each. The majority shareholder is also the CEO of WAU. The company is highly leveraged with a $6 million mortgage loan borrowed from a local bank that is payable in monthly installments until it matures in 15 years. The loan's promissory note has a variety of loan covenant provisions, including the financial covenants that the company must maintain a minimum current ratio of 2.0 and a minimum return on assets of 7%. WAU is approaching the end of its fiscal year and you are concerned that the company may not meet the minimum requirements for these two financial covenants on its loan. If they violate the loan covenants, the bank has the right to call the loan due immediately what would be difficult for the company to settle without the owners having to investment additional?

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Ethical Framework for Widgets Are Us WAU As the Controller for WAU you find yourself in an ethical dilemma Heres how you can navigate this situation u... View the full answer