Perform a cost-benefit-risk analysis to explain whether the benefits justify the costs of acquisition.

COMPANY B Illlurkrative Data for Educational Purporer All values shaun are in theurand 2017 2018 2019 Income Statement 27.981 26.302 27.091 Cost of Goods Sold [COGS) 15,38 18,41 18,15 Gross Profit 12.591 7.891 8.940 Expenses Salaries and Benefits 2,910 2,600 2,910 Rent and Overhead 1,354 1,354 1,354 Depreciation and Amortization 2,814 2,806 2,776 Interest 2,700 1,800 1,800 Total Expenses 9.778 8.560 B.840 Earnings Before Tar 2.813 (669] 100 Taxes 788 [141) 21 Net Earnings 2025 1529 73 2017 2018 2019 Balance Sheet Assets Cash 82,445 82,914 72,944 Accounts Receivable 1,380 1,297 1,336 Inventor 3,078 2,018 1,98: Property and Equipment 37,413 37,007 37,032 Total Assets 124 316 123 236 113 301 Liabilities Accounts Payable 1,560 ,003 935 Debt 90,000 90,000 80,000 Total Liabilities 91.560 91.009 80.995 Shareholders' Equity Equity Capital 35.685 33,685 33,685 Retained Earnings (929) (1,458) (1,379) Shareholders' Equity 32.756 32.227 32.306 Total Liabilities and Shareholders' Equite 124, 316 123 236 113,301 2017 2018 2019 Cash Flow Statement Operating Cash Flow Net Earnings 2,025 (529) Plus: Depreciation and Amortization 2,814 2,806 2,776 Less: Changes in Working Capital (10,312) (532) 25 Cash from Operations 15.151 2.869 2.830 Investing Cash Flow Investments in Property and Equipment (2,706) (2,400) (2,800) Cash from Investing [2.706] [2.400) (2.800) Financing Cash Flow Issuance [repayment) of Debt (10,000) Issuance [ repayment] of Equity Cash from Financing [10. 0 0 0) Net Increase ( decrease) in Cash 12.445 463 9,970) Opening Cash Balance 70,000 82,445 82,914 Closing Cash Balance 82.445 82.914 72.944 Supporting Schedules MPANY