The date is November 18, 2009. You are the chief executive officer of Omega Software a publicly owned company that is currently in financial difficulty. Omega needs new large bank loans if it is to survive.
You have been negotiating with several banks, but each has asked to see your 2009 financial statements, which will be dated December 31. These statements will, of course, be audited. You are now meeting with other corporate officers to discuss the situation, and the following suggestions have been made:
3. We owe Delta Programming $5 million, due in 90 days. I know some people at Delta. If we were to sign a note and pay them 12 percent interest, theyd let us postpone this debt for a year or more.
Instructions: evaluate each of the proposals to improve Omega Softwares financial statements. Your evaluations should consider ethical and legal issues, as well as, accounting issues.