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.

Required:

How will that information help the banker approve your loan? Explain.