(Learning Objectives 4, 5: Evaluating a business; advising a business) This exercise should be used in conjunction with Exercises 1-24A through 1-26A.

The owner of Earl Copy Center seeks your advice as to whether he should cease operations or continue the business. Complete the report giving him your opinion of net income, dividends, fi nancial position, and cash fl ows during his fi rst month of operations. Cite specifi cs from the fi nancial statements to support your opinion. Conclude your memo with advice on whether to stay in business or cease operations.

(Group B)