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Unformatted text preview: e owners of established convenience stores that CMS might be interested in and evaluate their suitability for
acquisition. Your preliminary evaluation of KCS is that it is a potential candidate for acquisition
and your initial discussions with Mr. Wu were favourable. Mr. Wu has agreed to allow you to
look at KCS’s most recent income statements. The income statements are presented below: Kenaston Convenience Store
Income Statements for the years ended March 31
Cost of sales
Amortization of capital
Salaries and wages
Repairs and maintenance
Net income 32,000 34,200 15,200
$56,030 In addition, you obtained the following information from your discussion with Mr. Wu and
from observing the business:
1 KCS is located in a two-storey, 30-old...
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This document was uploaded on 02/28/2014 for the course ACC 110 at Ryerson.
- Fall '12
- Financial Accounting