You are a staff accountant at Reimer & Company, a small public accounting firm. One of the firm's partners, Leona Reimer, has asked you to deal with a disgruntled client, Mr. Robert Ramsey, owner of the city's largest clothing store. Mr. Ramsey is applying to a local bank for a substantial loan to remodel his store. The bank requires accrual based financial statements, but Mr. Ramsey has always kept the company's records on a cash basis. He does not see the purpose of accrual-based statements. His most recent outburst went something like this: "After all, I collect cash from customers, pay my bills in cash, and I am going to pay the bank loan with cash. And, I already show my building and equipment as assets and depreciate them. I just don't understand the problem." Required: In your position as a staff accountant at Reimer & Company, prepare a memo to Mr. Ramsey, the client, and include the following: 1. Explain the difference between a cash basis and an accrual basis measure of performance. 2. Describe why, in most cases, accrual basis net income provides a better measure of performance than net operating cash flow. 3. Explain the purpose of adjusting entries as they relate to the difference between cash and accrual accounting