Sammy Hench has savings of $50,000 and is planning to invest in a business that will give him good returns. For the last six months, he has been investigating all types of business ventures and has finally decided to buy over an existing company. However, Sammy does not have any entrepreneurial or financial background that can assist him in making the right decision. His friends have advised him to look at a potential business’s historical financial statements. Is this advice helpful? How can you assist Sammy and explain to him why should he do so?