Your friend Maxine plans to supplement her job salary by running her own company at night and on the weekends. When the company earns enough money so that she can pay for a vacation home in the Caribbean, she plans to pay the bills of the company, sell the company’s remaining assets, withdraw all the company’s cash, and shut down the company. Since she will be extremely busy with her regular job and with running her new company, she plans to wait until she is ready to shut down the company to prepare a balance sheet, income statement, and cash flow statement. You think this is a bad idea.

Required: Do your best to convince Maxine that she should prepare financial statements more often, giving her examples of how doing this can help her and her company.  lo7