Merchandise Company – Recommendation

  1. Janet Flynn, owner of Reel Company, plans to apply for a bank loan at Petro National Bank. Because her company has a lot of debt on its balance sheet, Janet does not plan to show it to the loan officer. She plans only to bring the income statement. Do you feel that this move is a sound financial move by Janet? You make the call. Write down your specific recommendations to Janet? Do you agree or disagree with their recommendations for Janet?