Exercise 3B. Business Loan Banco De Oro MLHULLIER Exercise 4. Directions: Read and analyze well the case presented below and identify the needed information to be used in analyzing the 5C's of Credit for the loan application of Mr. Bawhal Luhmavas. Mr. Bawhal Luhmavaz applied for a P1.5 million loan on behalf of his business, "Kim's Restaurant," for additional capital in 2019. He is the Chairman of the Board of Kim's Restaurant. In their meeting, the Board decided to open an additional branch for the restaurant. Kim's Restaurant currently has 3 branches in Metro Manila and would like to open up a small branch in Quezon City. Kim's Restaurant has been in the business for 12 fruitful years and has been a previous borrower of the bank. The company had previous late payments before but the reasons are usually justifiable, and the balance of the loan, along with any penalties, if any, is paid. The three branches earn a net income of P900,000/ year. The lot where the main restaurant is located is pledged as collateral to the bank. This property is valued at F2 million. Shown below is an excerpt from Kim's Restaurant's 2018 consolidated audited financial statements. As of December 2018 As of December 2017 Current Assets 1,200,000 900,000 Long-term Assets 4,400,000 4,200,000 Short-term Liability 500,000 460,000 Long-term Liability 2,300,000 3,500,000 Equity 2,800,000 1,140,000 Net Income 900,000 950,000 Cash Flow from Operations 500,000 450,000 Note : Practice Personal Hygiene protocols at all times