Lisa Malesovas publishes a travel magazine. In need of cash, she asks Community Bank & Trust for a loan. The bank's procedures require borrowers to submit financial statements to show likely results of operations for the first year and likely financial position at the end of the first year. With little knowledge of accounting. Malesovas doesn't know how to proceed. Explain to her the information provided by the balance sheet and the income statement. Indicate why a lender would require this information.