The Poultry Products Inc.

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Being the primary users of this report, the three of you want Carruthers Poultry Products Inc. (CPP) to grow as a business. CPP falls under the distribution segment of the Canadian poultry industry and has much potential. Because you want to make sound business investments that will help you expand as a business and receive more dividends, performance evaluation is a key objective. Also, after having looked over the financial statements and finding the cash value to be in the negatives and equity to be comparatively lower than liabilities, I understand that net income maximization is crucial at this point in time. Bruce being the oldest out of the owners, is potentially looking forward to retire soon and will be in favour of business decisions that deliver in the short-term. Marcus is interested in this entrepreneurial venture only for the “lifestyle” aspect of it. This means that he wants the company to expand and be successful. Samantha will be interested in business propositions that will not only benefit in the short-term, but will also benefit in the long-term as she sees herself working as the owner of CPP in the future. Canada Revenue Agency (CRA) is a secondary user of your financial statements for tax purposes. CRA wants to ensure that the information provided is audited. As CPP is looking to make an investment in other poultry businesses in the potential future, I recommend that it follows recognized accounting standards. International Financial Reporting

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