Betsey Jordan asked a local bank for a $ 50,000 loan to expand her small company. The bank asked Betsey to submit a financial statement of the business to supplement the loan application. Betsey prepared the following statement of financial position:
1. The statement of financial position has several flaws. However, there is at least one major deficiency. Identify it and explain its significance.
2. As a bank manager, would you lend the company money? Explain.