Discuss ethical dilemma larry faces and what is the issue

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Larry has been the chef financial officer (CFO) of Maxima Auto Service for the past 10 years. The company has reported profits each year irs been in business. However, this year has been a tough one. Increased competition and the rising costs of labor have reduced the company's profit, On December 30: Larry informs Robert, the company's president and Larry's closest friend for the pest 10 yews, that a looks She the company will report a net loss (total expenses will be greater than total revenues) of about $50,000 this year

The next day, December 31, while Larry is preparing the year-end reports. Robert stops by Larry's office to tell him that an additional $75.000 of revenues needs to be reported and that the company can now report a worn, When Larry sirs about the sconce of the 075,000. Robed tells him. -Earlier in the month some customers paid tor auto services with cash and min this cash I bought additional assets for the company. 'Mats why the 575.000 never showed up in the bank statement I lust forgot to tell you about this earlier" When Larry asks tor more specifics about these transactions, Robed mumble, "I can't recall where I placed the customer sales invoices or the purchase receipts for the asset, but dont worry: 1 know they're here. We've been trends Icr a tot of years and you can trust me. Now let's hurry and finish Nose reports and 111 treat you to dinner tonight at the restaurant of your choice:-

Required:

Discuss the ethical dilemma Larry faces: What is the issue? Who are the parties infected? What factors should Larry consider in making his decision?

Reference no: EM131111038

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