Vince Hunt, president of Sabre Enterprises, applied for a $200,000 loan from First NationalBank. The bank requested financial statements from Sabre Enterprises as a basisfor granting the loan. Vince has told his accountant to provide the bank with a balancesheet. Vince has decided to omit the other financial statements because there was a netloss during the past year.

1. Is Vince behaving in a professional manner by omitting some of the financial statements?
2. What types of information about their businesses would owners be willing to providebankers?
3. What types of information would owners not be willing to provide?
4. What types of information about a business would bankers want before extendinga loan?
5. What common interests are shared by bankers and business owners?