A new client has come to you looking for assistance in determining which of the tow businesses
Question:
A new client has come to you looking for assistance in determining which of the tow businesses she should consider buying. Michelle Obama is looking to invest in a local small business. For the past few months, she has kept her ear to the ground for any new companies seeking financing and through this process, she has narrowed her decision to two companies. Mrs. Obama has the financial statements and selected financial information of each of these companies (see below) and is looking for professional comments. She wants you to help interpret the statements.
Required:
Prepare a 1-2 page memo highlighting the critical issues. Mrs. Obama would appreciate your interpretation of the different accounting policies and other items and their impact on net income. The memo should include general comments but should also include detailed calculations as to the impact of the accounting policies and other items. Mrs. Obama is a strong businesswoman but not a strong accountant, thus, you must be sure to write the memo using terms and explanations she will understand.