Chapter 6, Problem 6.6EYCT

To determine

The balance sheet:

Balance sheet is a financial statement that shows the assets, liabilities, and stockholders’ equity of a company at a particular point of time. It reveals the financial status of a company. Thus, this statement is also called as the Statement of Financial Position. It helps the users to know about the creditworthiness of a company as to whether the company has enough assets to pay off its liabilities.

To Write: A letter to the president of Incorporation S Toys regarding the nature of inventory error, and its effect on the financial statements.