Gao and Yi Huan want to open a Chinese restaurant in Baltimore. In need of cash, theyask City Bank \& Trust for a loan. The bank's procedures require borrowers to submit financialstatements-to show likely results of operations for the first year and likely financial position at theend of the first year. With little knowledge of accounting, Gao and Yi don't know how to proceed.Explain to them the information provided by the statement of operations (the income statement)and the statement of financial position (the balance sheet). Indicate why a lender would require thisinformation.