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Doctor Smith is contemplating the purchase of Dr. Johnsons practice. Frank, his office manager, is about to prepare a worksheet combining the results of both
Doctor Smith is contemplating the purchase of Dr. Johnsons practice. Frank, his office manager, is about to prepare a worksheet combining the results of both practices so Dr. Smith can review it. Frank has a twelve-month financial statement for Dr. Smiths office and a nine-month financial statement from Dr. Johnsons office. Which of the following approaches is correct?
A. The nine-month statement should first be annualized
B. Consistency over time periods is not necessary, so Frank can proceed
C. Neither of the above
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