Problem: What rights or claims may be violated? There are a few ethical dilemmas in this case. The first question relates to how the sale of business was reported on the statement of cash flow and how it should be reported. Another dilemma is whether or not to include or exclude information to the stakeholders that may affect the stock price of the company. For the most part the ethical dilemma is if the company relates to acting honestly and giving the necessary information for the bank to make the best decision about extending the loan. I do not think in this case that the controller acted ethically. One area is the way in which the controller treated the sale of the business on the statement of cash flows. The controller did not include the gains made from other business transactions specifically, pertaining to, or under operating activities. The cash flow from operating activities presents cash supplied from operating activities of $105. However, the amount of $45 million in cash is used by operating activities. Additionally, the controller reports the sale of other businesses with a book value of $300 million instead of the cash gained from the sale of $450