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.
1. What accounting information do you think is most important to take with you to discuss a possible loan with your banker?
2. 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?
3. 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?
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1. The accounting information that is most important to take with you to discuss a possible loan with the banker is all the businesses' financial details. These include details of current/past loans, debts, bank accounts, investment accounts, credit card accounts, and supporting information. In addition, you need to take with you full details of accounts receivable, accounts payable, and audited financial statements. Also, you need to carry the accounting details of the collateral and the plan for improving the cash flow. If your company has assets to pledge as collateral and the full accounting details are available, the bank will be able to offer you a better interest rate on the loan.
2. The accounting information that is most important to address the issue of time delays ...
The response provides you a structured explanation of three accounting information questions . It also gives you the relevant references.