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Ethics Case 21-7After graduating near the top of his class, Ben’s Naegle was hired by the local office of a big 4 CPA firm in his hometown. Two years later, impressed with his technical skills and experiences, Park Electronics, a large regional consumer electronics chain, hired Ben as assistant controller. This was last week. Now Ben’s initial excitement has turned to distress.The cause of Ben’s distress is the set of financial statements he’s stared at for the last four hours. For some time prior to his recruitment, he had been aware of the long trend of moderate profitability of his new employer. The reports on his desk confirm the slight, but steady, improvements in net income in recent years. The trend he was just now becoming aware of, though, was the decline in cash flows from operations. Ben had sketched out the following comparison:2011201020092008Income from operations$140,000,000$132,000,00$127,500,000$127,000,000Net income$38,500,000$35,000,000$34,500,000$29,500,000Cash flow from operations$1,600,000$17,000,000$12,000,000$15,500,000Profits? Yes. Increasing profits? Yes. The cause of his distress? The ominous trend in cash flow