1. Physicians Management Inc. (PMI) took over management of Sunset Medical in February 2019. While revenues increased under PMI, cash balances declined significantly despite the additional $400,000 in revenue. 2. The financial statements prepared by PMI and Jackson & Associates show differences that affect reported revenues and receivables. Dr. Jones questions whether actual revenues increased by $400,000 as PMI claims. 3. The contract between Sunset and PMI creates an ethical dilemma for PMI as it provides incentives for PMI to report financials in a way that is not fully transparent or aligned with Sunset's interests. Dr. Jones must determine whether to retain or terminate PMI based on analyzing the