My professor gave us this review question for a test and I was hoping someone could give me help to understand the question as well as what issues are raised in the question.

John Markus, a professional accountant, is sitting in his office when his most important agriculture client, Jeffery Dewhirst, walks in. Mr. Dewhirst owns and operates Central Farm, a large dairy farm in Southern Ontario. "I am sorry to barge in like this, but I've just been to my banker. He suggested that I ask you to explain to me some matters that affect my statements. You will recall that I needed to renew my loan this year, the new bank manager wants some changes made to my statements before he will process my loan application. "The banker wants me to switch from a cash basis of accounting to an accrual basis. This cash basis provides me with the information I need to evaluate my performance for the year-- after all, what I make in a year is the cash left in the bank once the harvest is sold! "I use these statements only for my banker and to pay income tax! I know the tax department will accept either the cash or accrual basis for my type of business. "Also, the banker wants me to value all my cattle at their market value. Why do they want me to group all my cattle together when they aren t the same? Some are used for breeding and some just for milk. Personally, I don't see the sense in valuing them at market when most of them won't be sold or replaced for a very long time. "I realize that I must provide the type of information that the bank manager wants, but I am very interest in understanding why. After all, I'm the one who has to pay for all of this!" Required As John Markus, please respond to Mr. Dewhirst in a letter. Please limit your letter to two pages, single-spaced with 12 point font. John Markus, a professional accountant, is sitting in his office when his most important agriculture client, Jeffery Dewhirst, walks in. Mr. Dewhirst owns and operates Central Farm, a large dairy farm in Southern Ontario. "I am sorry to barge in like this, but I've just been to my banker. He suggested that I ask you to explain to me some matters that affect my statements. You will recall that I needed to renew my loan this year, the new bank manager wants some changes made to my statements before he will process my loan application. "The banker wants me to switch from a cash basis of accounting to an accrual basis. This cash basis provides me with the information I need to evaluate my performance for the year-- after all, what I make in a year is the cash left in the bank once the harvest is sold! "I use these statements only for my banker and to pay income tax! I know the tax department will accept either the cash or accrual basis for my type of business. "Also, the banker wants me to value all my cattle at their market value. Why do they want me to group all my cattle together when they aren t the same? Some are used for breeding and some just for milk. Personally, I don't see the sense in valuing them at market when most of them won't be sold or replaced for a very long time. "I realize that I must provide the type of information that the bank manager wants, but I am very interest in understanding why. After all, I'm the one who has to pay for all of this!" Required As John Markus, please respond to Mr. Dewhirst in a letter. Please limit your letter to two pages, single-spaced with 12 point font