ACCMGT 545 Financial Accounting and Analysis Gremp Project Narrative Your friend, Peter Bock, has always loved repairing automobiles. In school he dreamed about being a mechanic and owning his own auto repair business. After high school, he immediately began working for The Awto Howse, a large, successful independent auto repair business. Ten years later, Peter was living his dream. He had moved up from apprentice to master technician and was a valued member of The Auto Howse staff. But Peter's dream was not completely fulfilled. He still wanted to own his own business, and now that might happen. Last week he received a call from Jeffrey Wong, a commercial broker, who told him about Buckner Auto Repair, Inc., a small auto repair shop that was for sale. Peter knew a little about the shop. Bill Buckner had owned it for many years. Peter felt the shop had a good reputation as evidenced by positive comments from people, whose opinion he valued, in the automotive profession. Since Peter discovered that your group was about to complete a course in financial accounting and analysis he called you for help in evaluating the merits of this potential business acquisition. He has supplied you with the following data and other information: Balance Sheets for 3 Years. (Memo balance sheet for 12/31/08). 1. 2. Income Statements and Statements of Retained Earmings for 3 years. 3. Mr. Buckner has suggested a sales price for the business of $250,000. Required 1. Based upon your analyses would you recommend that Peter make this investment? Give your reasons for recommending or not recommending this purchase. If you believe the price is too high, how much do you believe is reasonable? Note in your response any assumptions you make in your work on this case manner. Be sure to note any assumptions Be sure to that you make Hand in only one paper for the entire group. Do not put the project in any report sufficient. cover or binder. One staple in the upper left hand corner of the project should be