The company you work for is considering an initial public offering (IPO). The owner of the company sends you an email before the fiscal year end requesting a copy of the companys financial statements. In your reply, written in memo format, address the following topics:

1) Describe the accounting process that needs to be completed to prepare the financial statements. Include in your email at least five accounts that will be adjusted by the process and the ultimate effects on the financial statements.

2) State how the companys financial statements will change after the sale of the public offering.

3) Provide at least three ratios that investors will follow closely.

4) Inform the owner of the additional information that will need to be provided once the company goes public.