Short Case Scenario 14-1

question 3

Essay

Short Case Scenario 14-1
Mary Ann has always loved to cook and is interested in starting a catering business. Being aware of the failure rate of new businesses, she is considering buying an existing catering business that is up for sale. The current owners claim that the business is highly profitable, but Mary Ann has her doubts. She wonders why the owners would be so interested in selling the business if it is such a money maker. Furthermore, the price that they are asking seems high to Mary Ann. Without any formal training in accounting, Mary Ann asks a friend, Rolanda, for advice.
-The auditor's report has come back and Mary Ann is reviewing the financial statements.What information will Mary Ann find on the balance sheet?

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Definitions:

Sternal End

The part of a bone that is located nearest to the sternum, often referring to the end of the clavicle that articulates with the sternum.

Manubrium

The upper section of the sternum (breastbone), providing attachment points for the clavicles and the first pair of ribs.

Tensor Veli Palatini

A muscle of the soft palate involved in swallowing and opening the Eustachian tube to equalize middle ear pressure.

Digastrics

A muscle located under the jaw that acts in the opening of the mouth and drawing back of the lower jaw.