Opal, Inc., is about to make its first attempt to borrow from a local bank. The company uses LIFO for tax purposes, solely to defer taxes, and believes that income computed using the FIFO method would better reflect its income. The company also uses the double-declining balance method of depreciation for tax, although the straight-line method better reflects the actual depreciation. The company would like to present its financial position in the most favorable light. Therefore, Opal's CEO intends to provide the bank with an income statement prepared using the FIFO inventory method and straight-line depreciation. What types of problems will presenting the income statement to the bank in this fashion cause for Opal?