Ethics Case #2 This ethics case will give you some experience reading the related ASC in the FASB Codification and then using that information to evaluate a situation. Begin by reading the case below. The Case: In December, Mr. Wilson, the controller of Fargo company, a calendar fiscal-year company, is faced with a tough situation. The bond indenture of a major issue of Fargo bonds requires maintaining a 3-to-1 current ratio as measured at each balance sheet date. Fargo has recently experienced cash shortages caused by a downturn in the general economy and in the demand for Fargo's products. A substantial account payable is due in January. Fargo does not have the cash to pay the debt before the end of the current year. Furthermore the January cash budget based on a realistic estimate of sales and collections from accounts receivable indicates a cash shortage requiring short term financing. The payable due in January is large enough to cause the current ratio at December 31st to fall below 3.0. The controller begins the search for a financial institution willing to refinance the payable on a long term basis. If successful, the payable would be reclassified as long term enabling Fargo