[student007]

Hello, I have a few general questions regarding case analysis issues.

1. Let's say I'm preparing statements (in Canada) for a bank. Assuming the bank does not REQUIRE GAAP statements, and I my main goal is tax minimization (as a private company with a not fully material loan), would it be reasonable to depreciate assets using the CCA format as directed by the Income Tax Act?

2. If I have a loan with a bank that has a covenant regarding a working capital ratio, how can I prepare statements (generally) so that the information I provide maximizes this ratio (obviously within reason).

3. As a shareholder, would I rather statements prepared with income maximization objective, or a cash flow predictability objective? I would think both are advantageous because 1) income max. increases stock price and dividends, and 2) cash flow pred. also influences dividends in the future, as well as future risk of the entity.

Thanks.