6. Using your knowledge from other business courses (e.g., Economics, Management, Marketing and Finance) provide three questions that one would ask the Fenway Company to consider in an acquisition decision in addition to the information. The following accounts balances and other financial information are drawn from therecords of the Fenway Company for 2022.Fenway Company 2022Net sales Revenue 38,800Unearned Revenue 2600Accounts Receivable 8,000Cost of Goods Sold 26,000InventoryAccounts Payable 5,800Notes Payable5,000Supplies6,00050Supplies Expense 750Office Equipment 3,500Depreciation ExpenseAccumulated DepreciationOperating ExpensesCash - EndingLandCommon StockCash received from customersPurchased Office EquipmentReceived Cash from Issuing StockBeginning Balance Retained Earnings 8500Paid Cash for Dividends500Paid Cash for Operating Expenses100045004400200001200064002500300020001000InstructionsAs the Chief Financial Officer (CFO) of a publicly traded company you are charged withevaluating companies in a similar industry as your own for acquisition. The President ofthe corporation has requested that you evaluate the overall financial health of the FenwayCompany and report to the Board of Directors whether or not you should purchase theFenway Company. In connection with this endeavor, provide responses to the followingshort answer and essay questions.

Acquisition refers to an activity or a practice in which an investor or business entity purchases a…

Using your knowledge from other business courses (e.g., Economics, Management, Marketing and Finance) provide three questions that one would ask the Fenway Company to consider in an acquisition decision in addition to the information.

Using your knowledge from other business courses (e.g., Economics, Management, Marketing and Finance) provide three questions that one would ask the Fenway Company to consider in an acquisition decision in addition to the information.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

6. Using your knowledge from other business courses (e.g., Economics, Management, Marketing and Finance) provide three questions that one would ask the Fenway Company to consider in an acquisition decision in addition to the information.

The following accounts balances and other financial information are drawn from the
records of the Fenway Company for 2022.
Fenway Company 2022
Net sales Revenue 38,800
Unearned Revenue 2600
Accounts Receivable 8,000
Cost of Goods Sold 26,000
Inventory
Accounts Payable 5,800
Notes Payable
5,000
Supplies
6,000
50
Supplies Expense 750
Office Equipment 3,500
Depreciation Expense
Accumulated Depreciation
Operating Expenses
Cash - Ending
Land
Common Stock
Cash received from customers
Purchased Office Equipment
Received Cash from Issuing Stock
Beginning Balance Retained Earnings 8500
Paid Cash for Dividends
500
Paid Cash for Operating Expenses
1000
4500
4400
20000
12000
6400
2500
3000
2000
1000
Instructions
As the Chief Financial Officer (CFO) of a publicly traded company you are charged with
evaluating companies in a similar industry as your own for acquisition. The President of
the corporation has requested that you evaluate the overall financial health of the Fenway
Company and report to the Board of Directors whether or not you should purchase the
Fenway Company. In connection with this endeavor, provide responses to the following
short answer and essay questions.

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