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You, CPA, just got home from work when you get a call from John Mendelusk, a good friend and former roommate of yours who lives in Kenora, Ontario. John was always the chef in the house and had always dreamed of one day owning his own restaurant. John begins, "Hi CPA, it is John! Guess what? The corner pizzeria is going up for sale. I've been talking with the owner, Jill, and she's retiring, so she wants to sell the business. We're still in preliminary discussions but I'm really excited about the prospects." CPA: "Oh, Jill's Pizza? That place has great pizza and it's always busy." John: "Exactly. Their specialty is using only the freshest ingredients which results in a great taste. This is totally consistent with my cooking philosophy! I think I'm ready to make the leap into the restaurant world and my wife and kids fully support my decision. The pizza industry is competitive but I know my pizza pretty well. "Jill sent me her latest financial statements. She got a private loan several years ago when she was having some cash flow issues, and the bank insists that she submit financial statements that are compliant with.
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