Chocolates From Heaven Inc. (CFHI) produces small batch artisanal chocolate. It is a private

company owned by two equal shareholders, David Chang and Sharjeel Ahmed. They started

CHFI in 1996 and have grown a successful business. They intend to sell the business this

year (2018) and already have an interested buyer. Collateral for the loan is inventory and

accounts receivable. Audited Kinancial statements are a requirement of the loan agreement.

Audit Class LLP has been appointed the new auditor this year. The previous auditor was a

small local Kirm (sole-proprietorship) and the owner retired last year.

The following are the draft Kinancial statements for the year ended 2018.