The dilemma is whether the branch manager should approve the loan after seeing loopholes in Ebenezer’s firm’s financial statement. It is also about whether to give priority to personal relations over professional conduct.
The scenario poses dilemma to Tim among two choices. Primarily, he can go ahead and sanction Ebenezer’s loan by doubling the loan amount. By doing this he would be faithful to his friend and also make sales for the bank. On the other side, he is putting bank’s funds at risk considering the fact that Ebenezer’s financial situation does not sound eligible for additional loan. Cash Flow Statement measures a company’s ability to cover its expenses in the near term. In Ebenezer’s case receivables, inventory, and accounts payable
