You are the controller of Jenkins Corp. A few days ago, the president of the company asked you to provide 20 financial ratios for a press release for the first quarter of the year.

The stock price of the company had been falling recently and the president hopes that a positive press release will turn the situation around.

You provided the 20 ratios and are now asked to proof read the press release that the president wrote for accurancy before it goes out later this afternoon.

In the press release, the president highlights the 25% sales increase over last year, the imrprovement in the current ratio from 1.5 to 1 last year to 3 to 1 this year and also states that

production was up 50% over the first quarter last year.

The press release does not mention that the debt to asset ratio has increased from 35% to 50%, that inventories are up 89%, and that even though the current ratio improved, the accounts receivable turnover fell

from 12 to 9. Also not mentioned is that the reported profit for the first quarter would have been a loss, if the estimated lives of plant and machinery had not been increased by 30%.

Who are the stakeholders?

Is there anything unethical in the president's actions?

What would you do as controller of the company?