•What are the effects of Lucy’s classification on the financial statements? (1 Paragraph)
•Are there any ratios that might be of concern to the local bank that will be misstated by Lucy’s actions? (1 Paragraph)
•Do you think Lucy’s actions are unethical? Suppose Lucy’s uncle agrees to be a partner in the company and Lucy can afford to buy his share by repaying the $50,000 with interest. Does that change your opinion? (2 to 3 Paragraphs)
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