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Assignment help 837

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 $1 million. Marta says that the 2019 ending inventory 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.”

You conclude that Marta is incorrect. Write a brief, tactful memo to Marta, clarifying the situation


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