(Accounting information 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. Business is good, and your monthly finan¬ cial statements show that your organization is consistently profitable. Cash flow is becoming a small problem, however, and you could need to take a loan from the bank. You have also been receiving customer complaints about time delays and price increases.

a. What accounting information do you think is most important to take with you to discuss a possible loan with your banker?

b. What accounting information do you think is most important in ascer¬ taining the business activities of your accounting firm in regard to ad¬ dressing time delays and price increases? What nonaccounting information is important?

c. Can the information in parts

(a) and

(b) be gathered from the account¬ ing records directly? Indirectly? If not at all, where would you obtain such information?

LO1.