tA

Question $22(1$ point$)$

You take a look at a friend's balance sheet for their business.

They have $$1000$ cash and $$9000$ in Accounts Receivable.

$($Some of these accounts have been outstanding for more than a year.$)$ They tell you their busines is worth $$10,000$ and you can buy it from them for that much.

You tell them that:

a$)$ According to their balance sheet, their business IS worth $$10,000.$

b$)$ You are somewhat hesitant to buy the business for that much because not all of the accounts receivable

might be collectible.

c$)$ You'll have to think about it$,$ and you would like to hear more about their sales for each year.

d$)$ All of the above.