Accounting for Decistion Makers Essay

The Question Charlie and Maribelle Brown have owned and operated a sell furniture store for more than 20 years. They have employed an self-sustaining CPA during this time to prepare various sales assess, payroll tax, and income tax returns, as substantially as financial statements for themselves and the bank from which they have borrowed gold from time to time.They are considering selling the store but are groping about how to establish an asking price. Prepare a brief indite answer (no more than a couple of paragraphs) about what type of data is likely to be included in the material prepared by the CPA that may help the Browns establish an asking price for the store. date 1Reviewing the past and present financial statements prepared by their CPA, would leave the Browns to trend historical data such as cash prevail and cost of operations. This, coupled with the current and projected economic climate as well as current and projected cost of living, would help the Browns to record how much they spend to keep their business running as well as how much theyve profited over time.Although the information provided in the financial statements is non a concrete indicator, it is a good gauge of how the Browns business ordain perform in the future. Unless major economic changes or other unlooked-for circumstances occur, historical performance often tends to remain constant. The Browns would be sufficient to use most of the information provided by their CPA to determine a fair asking price for their retail furniture store.