You are the controller of Small Toys Inc Marta Johns, the president, recently mentioned to you that she found an error in the 2018 financial statements which she believes has corrected itself She determined, in discussions with the Purchasing Department, that 2018 ending inventory was overstated by...

To Marta Johns President From Student Re 2018 ending inventory error As you k ...

You are the controller of Small Toys Inc. Marta Johns, the president, recently mentioned to you that

Question:

You are the controller of Small Toys Inc. Marta Johns, the president, recently mentioned to you that she found an error in the 2018 which she believes has corrected itself. She determined, in discussions with the Purchasing Department, that 2018 was overstated by $1 million. Marta says that the 2019 is correct. Thus, she assumes that 2019 income is correct. Marta says to you, "What happened has happened-there's no point in worrying about it anymore."
|Instructions
You conclude that Marta is incorrect. Write a brief, tactful memo to Marta, clarifying the situation.
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...