What might be the motive of the cfos actions

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Discussion Assignment Instructions

The student will post one thread of at least 400 words For each thread, students must support their assertions with at least 1 scholarly citation in APA format and at least one Bible verse. The integration of the Bible verse and the discussion content should be evident. Each reply must incorporate at least 1 scholarly citation in APA format. Any sources cited must have been published within the last five years. Acceptable sources include the textbook, and scholarly sources from the Library's databases.

Discussion Thread: Manipulation of Receivables

Holman Electronics manufactures audio equipment, selling it through various distributors. Homan's days sales (accounts receivable/average daily credit sales) figures increased steadily in 20X1 and then spiked dramatically in 20X2, peaking at 120 days in the second quarter. In the third quarter of 20X2, Holman's days sales outstanding figures dropped to 90 days. Its chief financial officer engineered this drop by artificially reducing the amount of outstanding accounts receivable. Channel partners with large outstanding receivables were pressured into signing notes for those amounts. Once sales personnel secured the notes, the CFO directed a reclassification entry to the general ledger converting more than $30 million in trade receivables into notes receivables, which are not included in the days sales outstanding calculation. This reclassification was not disclosed in the Form 10-Q that Homan filed for that quarter. Get top-rated assignment help now.

What might be the motive of the CFO's actions? Explain your answer using specific content from this week. The Bible is clear about ethics and provides a guide for financial ethics. Proverbs 28:20 states "A faithful man will abound with blessings, but whoever hastens to be rich will not go unpunished." Read the book of Proverbs and provide five scriptures that relate to the situation in this week's discussion. Include the five scriptures in your response and provide an analysis of how the scriptures relate directly to this week's content.

Reference no: EM133914867

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