please read the following case study and the questions below (2,3).

Major Case 3 Kiley Nolan's Ethical Dilemma (a GVV Case) Nouth City Electronics involved in printed circuit board assembly (PCBA), dealing with the assembly of complex electronic system processes. The equipment is sold to Vanety of customers throuphout the United States and abroad The electronics company, based in the city of South San Francisco, is publicly owned Joth Goldberg is the chief executive officer of the company David Levin is the chief financial officer n's March 30, 2019 and Kiley Nolan, controller for South City Electronics, has just gotten off the phone with her supervisor, South City's CFO David Levin, who reiterated the points he made in a face to face meeting with her earlier that day-that the company would be in default on a $10 million loan if its cash flow and earnings for the quarter ended March 31 2019, did not meet set goals in the loan agreement At that date, the company's cash flow was 5920,000 and the earnings were $460.000 This is $300.000 and $240.000, respectively below prescribed levels Gilmore knew her boss wanted ber to agree to immediate revenue treatment for the transaction described below The Transaction South City transferred title to equipment sold to Victor Systems on March 29, 2019 the date of delivery on a $16 million sale. The arrangement allowed for the transfer of title on delivery to Victor's site as had occurred However, customer-specific acceptance provisions permit the customer to return the ment unless the equipment satisfies certain performance test South City cannot demonstrate that at the time of delivery the equipe alieady met all the criteria and specifications in the customer specific acceptance provisions. The arrangement also called for the vendor to perform the installation South City also provides technical support for the installation and use of the equiposentong forward Kleysoponitug about what she should do She believes it would be wrong to record the transaction as revenue in the first quarter of 2019 under GAAP and the recently adopted FASB recognition standard Race from Contract with However she is under a great deal of pressure to do so Levi her boss took the position that the conditions under which the customer intends to operate the equipment were replicated in preshipment tette ki knew however that the performance of the cotpoet onderstand and operated at the customers facility may reasonably be different from that tested prior to shipment 2. Suppose you are Kiley Nolan and prepare for your meeting with David Levin tomorrow. Consider yourself in the role of Kiley Nolan and answer the following: Was I right to hesitate and ask for a second meeting with David to buy more time? Or did that weaken my position? Mention concepts you learned in the textbook or other assigned readings to support this answer. Fill out the table below with the main arguments that David is likely to bring up your corresponding main counter-arguments, and any additional comments you may have. In the role of Kiley, fill out this table carefully to help remember what to say at the meeting with David tomorrow David's arguments Kiley's counterarguments Comments 1. 2. 3. 3. Nolan may use several powerful levers in this case, including bringing her concerns to others higher in the organization or outsiders. What would be her most convincing argument if she discussed the $1.6 million revenue with the: CEO Audit committee of the Board of Directors External auditors Securities and Exchange Commission Major Case 3 Kiley Nolan's Ethical Dilemma (a GVV Case) Nouth City Electronics involved in printed circuit board assembly (PCBA), dealing with the assembly of complex electronic system processes. The equipment is sold to Vanety of customers throuphout the United States and abroad The electronics company, based in the city of South San Francisco, is publicly owned Joth Goldberg is the chief executive officer of the company David Levin is the chief financial officer n's March 30, 2019 and Kiley Nolan, controller for South City Electronics, has just gotten off the phone with her supervisor, South City's CFO David Levin, who reiterated the points he made in a face to face meeting with her earlier that day-that the company would be in default on a $10 million loan if its cash flow and earnings for the quarter ended March 31 2019, did not meet set goals in the loan agreement At that date, the company's cash flow was 5920,000 and the earnings were $460.000 This is $300.000 and $240.000, respectively below prescribed levels Gilmore knew her boss wanted ber to agree to immediate revenue treatment for the transaction described below The Transaction South City transferred title to equipment sold to Victor Systems on March 29, 2019 the date of delivery on a $16 million sale. The arrangement allowed for the transfer of title on delivery to Victor's site as had occurred However, customer-specific acceptance provisions permit the customer to return the ment unless the equipment satisfies certain performance test South City cannot demonstrate that at the time of delivery the equipe alieady met all the criteria and specifications in the customer specific acceptance provisions. The arrangement also called for the vendor to perform the installation South City also provides technical support for the installation and use of the equiposentong forward Kleysoponitug about what she should do She believes it would be wrong to record the transaction as revenue in the first quarter of 2019 under GAAP and the recently adopted FASB recognition standard Race from Contract with However she is under a great deal of pressure to do so Levi her boss took the position that the conditions under which the customer intends to operate the equipment were replicated in preshipment tette ki knew however that the performance of the cotpoet onderstand and operated at the customers facility may reasonably be different from that tested prior to shipment 2. Suppose you are Kiley Nolan and prepare for your meeting with David Levin tomorrow. Consider yourself in the role of Kiley Nolan and answer the following: Was I right to hesitate and ask for a second meeting with David to buy more time? Or did that weaken my position? Mention concepts you learned in the textbook or other assigned readings to support this answer. Fill out the table below with the main arguments that David is likely to bring up your corresponding main counter-arguments, and any additional comments you may have. In the role of Kiley, fill out this table carefully to help remember what to say at the meeting with David tomorrow David's arguments Kiley's counterarguments Comments 1. 2. 3. 3. Nolan may use several powerful levers in this case, including bringing her concerns to others higher in the organization or outsiders. What would be her most convincing argument if she discussed the $1.6 million revenue with the: CEO Audit committee of the Board of Directors External auditors Securities and Exchange Commission