Mr. Sage, the owner, is applying to a local bank for a
substantial loan to remodel his store. The bank requires
GAAP based financial statements, but he has always kept the
company's records on a cash basis. He doesn't see why
the bank requires GAAP based financial statements.
He recently shouted at top of his lung "After all, I collect
cash from customers, pay my bills in cash, and I am
going to pay the bank loan with cash. I already show my
building...