Jennifer Rankine is an accountant for a local manufacturing company Jennifers good friend, Mike Bortolotto, has been operating a retail sporting goods store for about a year The store has been moderately successful, and Mike needs a bank loan to help finance the next stage of his stores growth He has asked Jennifer to prepare financial statements that the banker will use to help decide whether to grant the loan Mike has proposed that the fee he will pay for Jennifers accounting work should be contingent upon his receiving the loan Required What factors should Jennifer consider when making her decision about whether to prepare the financial statements for Mikes store

Question: Jennifer Rankine is an accountant for a local manufacturing company. Jennifers good friend, Mike Bortolotto, has been operating a retail sporting goods store for about

Jennifer Rankine is an accountant for a local manufacturing company. Jennifer’s good friend, Mike Bortolotto, has been operating a retail sporting goods store for about a year. The store has been moderately successful, and Mike needs a bank loan to help finance the next stage of his store’s growth. He has asked Jennifer to prepare that the banker will use to help decide whether to grant the loan. Mike has proposed that the fee he will pay for Jennifer’s accounting work should be contingent upon his receiving the loan.

Required:
What factors should Jennifer consider when making her decision about whether to prepare the for Mike’s store?

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