5:43< ВackAssignment DetailsATG-110-20A01: Financial Accounting (Session II Summe...1.ETHICS New Wave Images is a graphics design firmthat prepares its financial statements using acalendar year. Manny Kinn, the company treasurerand vice president of finance, has prepared aclassified balance sheet as of December 31. InJanuary, this balance sheet will be submitted alongwith an application for a loan from First PeoplesCommunity Bank. An excerpt from the balance sheetfollows:Cash$ 25,000Accounts receivable85,000....Total assets$250,000The accounts receivable balance includes a $56,000loan to Tom Morrow, the company president. Tomborrowed the money from New Wave 18 monthsearlier for a down payment on a new home. Tom hasorally assured Manny that he will pay off the loanwithin the next year. Because Tom is the companypresident, Manny treats the amount due as a tradeaccount receivable. In addition, Manny knows that thebank will consider a large balance in trade accountsreceivable more favorably than a large personal loanto a single individual. Manny reported the $56,000 inthe same manner on the preceding year's balancesheet.1.Is Manny behaving ethically byreporting the loan to Tom as a trade accountreceivable? Why?2.Who will be affected by Manny'sdecision?View Discussion5DashboardCalendarTo DoNotificationsInbox因

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Description: 5:43< ВackAssignment DetailsATG-110-20A01: Financial Accounting (Session II Summe...1.ETHICS New Wave Images is a graphics design firmthat prepares its financial statements using acalendar year. Manny Kinn, the company treasurerand vice president of

Trade receivables refers to any form of receivables such as notes or accounts receivables which are…

Business

Accounting

ETHICS New Wave Images is a graphics design firm that prepares its financial statements using a calendar year. Manny Kinn, the company treasurer and vice president of finance, has prepared a classified balance sheet as of December 31 In

ETHICS New Wave Images is a graphics design firm that prepares its financial statements using a calendar year. Manny Kinn, the company treasurer and vice president of finance, has prepared a classified balance sheet as of December 31 In

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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