In your own wrds answer the below Needs to be less than 350 but greater than wrds and original work

In your own wrds answer the below Needs to be less than 350 but greater than wrds and original work

Moss Exports is having a bad year Net income is only $60,000 Also, two important overseas customers are falling behind in their payments to Moss, and Moss’s accounts receivable are ballooning The company desperately needs a loan The Moss Exports Board of Directors is considering ways to put the best face on the company’s financial statements Moss’s bank closely examines cash flow from operating activities Daniel Peavey, Moss’s controller, suggests reclassifying the receivables from the slow-paying clients as long-term He explains to the board that removing the $80,000 increase in accounts receivable from current assets will increase net cash provided by operations This approach may help Moss get the loan

Requirements

1 Using only the amounts given, compute net cash provided by operations, both without and with the reclassification of the receivables Which reporting makes Moss look better?

2 Under what condition would the reclassification of the receivables be ethical? Unethical?