You Evaluate Loan Requests as Part of Your Job at Eastwood

question 2

Essay

You evaluate loan requests as part of your job at Eastwood National Bank. One loan request you received is from Surfer Dude Supplies, a small company. Richard Tracy, the CEO, is requesting $105,000 and brings you a trial balance (or statement of accounts) for his first year of operations ended December 31.
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While you are willing to work with Richard, how would you explain to him that a complete set of financial statements from his accountant would be more useful for evaluating the loan request?

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Definitions:

Brand Equity

The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service.

Merchandise

Goods that are bought and sold in business; the commodities or products available in the market.

Atmospherics

The use of space, color, lighting, scents, and sounds within a retailer's environment to influence the perception and behavior of customers.

Unique Image

A distinctive visual or brand identity that sets a product, person, or company apart from its competitors.