It is important for the management including accountants of the companies to follow the ethical principles including credibility, professional competence & due care, professional behavior, integrity and confidentiality. After evaluating the case study, it is quite evident that the Edward is not behaving ethically as because he is intentionally using the low break-even rate just to attract the potential investors, so that they can be attracted to purchase the business. In actual, the break-even rate must be high because of the increase in the interest expense. So, it is considered to be unethical reporting of the information to the potential investors.