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Assume, for this question only, the following: During the negotiations, Juan guaranteed Sarita that the business had turned a profit in each of the past

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Assume, for this question only, the following: During the negotiations, Juan guaranteed Sarita that the business had turned a profit in each of the past five years. Actually, it lost money in each of those years, although Juan did not know that because his girlfriend, Carleigh [who served as the business's bookkeeper}, was hiding that fact from him. Carleigh was afraid that Juan, who was prone to depression and suicidal thoughts, would not be able to handle the truth about the business's losses. So, she "cooked the books" and had been secretly infusing the business with cash from an inheritance she had received from a rich aunt. Sarita looked at the balance sheet, was satisfied that the business was in decent shape, and likely would not have bought the business othenryise. After the sale, though, Sarita and her accountant discovered Carleigh's cover up

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