Accounting for Decistion Makers Essay

The Question Charlie and Maribelle Brown dedicate owned and operated a retail article of furniture store for more than 20 years. They have employed an independent certified public accountant during this time to prepare various gross sales tax, payroll tax, and income tax returns, as well as financial statements for themselves and the affirm from which they have borrowed money from time to time.They are considering selling the store only if are uncertain slightly how to establish an inquire price. Prepare a brief written answer (no more than a couple of paragraphs) about what type of information is likely to be included in the visible prompt by the CPA that may help the Browns establish an asking price for the store. Assignment 1Reviewing the past and present financial statements prepared by their CPA, would allow the Browns to trend historical data such as cash flow and constitute of operations. This, coupled with the current and projected sparing climate as well as curren t and projected cost of living, would help the Browns to understand how much they spend to keep their business raceway as well as how much theyve profited over time.Although the information provided in the financial statements is not a concrete indicator, it is a good aegir of how the Browns business will perform in the future. Unless major economic changes or other unforeseen circumstances occur, historical performance often tends to stick around constant. The Browns would be able to use most of the information provided by their CPA to determine a fair asking price for their retail furniture store.