You are the owner and manager of a small auto repair shop that does routine maintenance, major repairs, and body work. Business is good and your monthly financial statements show that your shop is consistently profitable. Cash flow is becoming a small problem, however, and you may need to take out a loan from the bank. You have also been hearing customer complaints about time delays and price increases.

a. What piece or pieces of accounting information do you think is/are most important to take with you to discuss a possible loan with your banker?

b. What piece or pieces of accounting information do you think is/are most important in ascertaining the business activities of your repair shop in regard to addressing time delays and price increases? What about non-accounting information?

c. Can the various information in parts a and b be gathered from the accounting records directly? Indirectly? If not at all, where would you need to look for such information?

LO2