Please post at least a three paragraph reply to the following ethical dilemma. Also reply to the posts of at least two fellow students. Each of your replies should be at least a paragraph long.

Airport Accessories $($AA$)$ has several loans outstanding with a local bank. The loan contract contains an agreement that AA must maintain a current ratio of at least $0\mathrm{.}90.$ Micah, the assistant controller, estimates that the year$-$end current assets and current liabilities will be $$2,100,000$ and $$2,400,000,$ respectively. These estimates provide a current ratio of only $0\mathrm{.}875.$

Violation of the debt agreement will increase AA$$s borrowing costs because the loans will be renegotiated at higher interest rates.

Micah proposes that AA purchase inventory of $$600,000$ on credit before year$-$end. This will cause both current assets and current liabilities to increase by the same amount, but the current ratio will increase to $0\mathrm{.}90.$ The extra $$600,000$ in inventory will be used over the next year. However, the purchase will cause warehousing costs and financing costs to increase.

Micah is concerned about the ethics of his proposal. What do you think?