Two days after you provide the ratios and data requested, Mary Marcus, the public relations director, asks you to prove the accuracy of the financial and operating data contained in the press release that was written by the president and edited by Mary. In the press release, the president highlights the sales increase of 25% over last years first quarter and the positive change in the current ratio from 1:5 last year to 3:1 this year. He also emphasizes that production was up 50% over the prior years first quarter.

You notice that the press release contains only positive or improved ratios and none of the negative or deteriorated ratios. For instance, there is no mention that the debt to assets ratio has increased from 35% to 55%, that inventories are up 80%, and that while the current ratio improved, the acid test ratio fell 1:1 to 0.5:1. There is also no mention that the reported profit for the quarter would have been a loss had not the estimated lives of Masons plant and machinery been increased by 30%.

• Who are the stakeholders in this situation?
• Is there anything unethical in President Mayers actions?
• Should you as the controller remain silent? Does Mary have any responsibility?