01.1 31-2 Demand for Financial Reporting Suppose you are running your own profitable small business, operating a food truck that sells 12 different varieties of mac and cheese. Given your success, you want to add to your operations with a second truck, but you need $40,000 to buy the truck and equipment for it. You approach a friendly local banker who really likes your food and is interested in considering lending you the $40,000 you need. But before the banker can approve a loan, she needs you to provide a balance sheet, income statement, and statement of cash flows for the most recent year. How will that information help the banker approve your loan? Required: Write a brief explanation of how the information on the (a) balance sheet, (b) income statement, and (c) statement of cash flows will help the banker approve your loan. F

Demand for Financial Reporting Suppose you are running your own profitable small business, operating a food truck that sells 12 different varieties of mac and cheese. Given your success, you want to add to your operations with a second truck, but you need $40,000 to buy the truck and equipment for it. You approach a friendly local banker who really likes your food and is interested in considering lending you the $40,000 you need. But before the banker can approve a loan, she needs you to provide a balance sheet, income statement, and statement of cash flows for the most recent year. How will that information help the banker approve your loan? Required: Write a brief explanation of how the information on the (a) balance shect, (b) income statement, and (c) statement of cash flows will help the banker approve your loan