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Knowing that you have some accounting experience, a friend has sought your advice regarding a business that he intends purchasing. The balance sheet for the

"Knowing that you have some accounting experience, a friend has sought your advice regarding a business that he intends purchasing. The balance sheet for the business shows total assets of $120 000 and liabilities of $60 000. The selling business has provided no notes to accompany the balance sheet. On the basis of the information provided, your friend believes the business is worth $60 000. Advise your friend as to the accuracy of his assessment and what questions regarding the balance sheet he should ask the seller of the business."

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