Mary Ann is considering buying an existing catering business that is up for sale. The current owners claim that the business is highly profitable, but Mary Ann has her doubts. She also thinks that the price that they are asking seems high. In reviewing the financial statements of the catering business, she discovers that the current balance sheet shows that the business has more liabilities than assets. Why would this explain why the owners want to sell the business, use ratios to analyze for Mary Ann? Use the knowledge from Chapter 11 help Mary Ann. You are also encouraged to discuss with your classmates once you posted your answer. Permalink Reply