Jim and Andrea Kerslake want to open a restaurant. In need of cash, they meet with their

Question:

Jim and Andrea Kerslake want to open a restaurant. In need of cash, they meet with their bank manager for a loan. With little knowledge of finance, the Kerslakes don't know how the lending process works. Explain to them the information provided to the bank by the income statement (statement of operations) and the (statement of financial position). Indicate why a lender would require this information.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...