Question 1

Aggressive Corporation approaches Matt Taylor, a loan officer for Oklahoma State Bank, seeking to increase the company's borrowings with the bank from $100,000 to $150,000. Matt has an uneasy feeling as he examines the loan application from Aggressive Corporation, which just completed its first year of operations. The application included the following financial statements

AGGRESSIVE CDHPDRAHON Income Statement For the year ended December 31, 2018 Net sales $200,000 Expenses: Cost of goods sold $110,000 Operating expenses 50,000 Depreciation expense Total expenSEs Net income