Reference no: EM13530502

Horizon Corporation manufactures personal computers. The company began  operations in 2002 and reported profits for the years 2004 through 2009. Due primarily  to increased competition and price slashing in the industry, 2010's income statement  reported a loss of $20 million. Just before the end of the 2011 fiscal year, a memo from  the company's chief financial officer to Jim Fielding, the company controller, included  the following comments:
!f we don't do something about the large amount of unsold computers already  manufactured, our auditors will require us to write them off. The resulting loss for 2011 will cause a violation of our debt covenants and force the company into bankruptcy. I
suggest that you ship half of our inventory to J.B. Sales, Inc., in Oklahoma City. I know  the company's president and he will accept the merchandise and acknowledge the  shipment as a purchase. We can record the sale in 2011 which will boost profits to an  acceptable level. Then J.B. Sales will simply return the merchandise in 2012 after the  financial statements have been issued.
Required:
Discuss the ethical dilemma or explain why you do not perceive an ethical dilemma.  Describe your options and responsibilities along with the possible consequences of any  action you might take. Who would be affected by the alternative courses of action and  how.