Holman Electronics manufactures audio equipment, selling it through various distributors. Homan's days sales (accounts r

[answerhappygod]

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.
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.