Papadopoulos Limited (PL) sells retail merchandise in Canada. The company was incorporated last year and is now in its second year of operations. PL is owned and operated by the Papadopoulos family, and Iris Papadopoulos, the company president, has decided to expand into the American marketplace. To do this, bank financing will be necessary. The books have been kept by Iris's daughter Tonya, who is studying accounting in university. Financial statements had been prepared only for tax purposes in the past. For the year ended December 31, 2020, Tonya prepared the following statement showing cash inflows and cash outflows: Sources of cash: From shareholder loan $ 150,000 From sales of merchandise 350,000 From truck financing 50,000 From term deposit cashed in 100,000 From interest income 10,000 Total sources of cash 660,000 Uses of cash: For fixed asset purchases For inventory purchases 100,000 250,000 Operating expenses, including depreciation of $70,000 160,000 For purchase of investment For purchase of truck 55,000 50,000 30,000 645,000 $ 15,000 For interest on debt Total uses of cash Net increase in cash Tonya showed the statement to her mother, stating that the bank was sure to give them a loan, especially since they were profitable in their second year and since cash had increased over the year, which shows that it had been a good year. Iris was not convinced, however, and decided to have the statement looked at by a "real" accountant. Required: Adopt the role of the accountant and, if necessary, redraft the statement for the bank with proper classifications. Discuss the company's financial position and conclude with the likely response from the bank. Consider ASPE to be a constraint