The balance sheet for Bradley, Simon & Kratz, a well-regarded New York sports management firm, is included below. Your client, a retiring professional athlete, has been offered a partnership in the firm. Based on the information included in the balance sheet, how would you counsel your client? Would you recommend that he join the partnership? Why or why not?

Discuss the pros and cons of joining Bradley, Simon & Kratz. If you do not believe you are provided with enough information or you would like to review other information, what other information would you counsel your client to find out about Bradley, Simon & Kratz? Provide other observations you might notice about this firm, merely by reviewing this balance sheet.

Balance Sheet

As of April 30, 2020

Assets Current Assets: Cash $ 160,000 Office Supplies 230,000 Accounts Receivable 350,000 Note Receivable From Kratz 150,000 Total Current Assets $890,000 Fixed Assets: Equipment 70,000 Land 50,000 Building 300,000 Antique Furniture 1,740,000 Total Fixed Assets $2,160,000 Intangible Assets: Trademark 500,000 Total Assets: $ 3,550,000

Liabilities & Owners Equity Current Liabilities: Unpaid Rent $ 180,000 Accounts Payable 400,000 Unearned Fees 110,000 Notes Payable 380,000 Total Current Liabilities: $ 1,070,000 Long-Term Liabilities: Mortgage Payable 950,000 Total Liabilities $ 2,200,000 Partnership Equity: Bradley, Partners Equity $880,000 Simon, Partners Equity 610,000 Kratz, Partners Equity (140,000) Total Owners Equity 1,250,000 Total Liabilities & Owners Equity $ 3,550,000