Problem: You are a partner in a local accounting firm that does financial planning and prepares tax returns, payroll and financial reports for medium-size companies. Your monthly financial statements show that your organization is consistently profitable. Cash flow is becoming a small problem, however, and you need to borrow from your bank. You have also been receiving some customer complaints about time delays and price increases.
Q1. What accounting information do you think is most important to take with you to discuss a possible loan with your banker?
Q2. What accounting information do you think is most important to address the issues of time delays and price increases in you business? What non-accounting information is important?
Q3. Can the information in parts (a) and (b) be gathered from the organization's books and records directly? Indirectly? If the information cannot be obtained from internal records, where would you obtain such information?
300 words total.