Financial Statements cw report

Prime Bank Limited has been approached by Burke plc, a restaurant chain managing company, for a long term loan in order to expand its operations. The financial outlook of the company looks stable. Although the net profit and gross profit margin of the company has decreased during the year, the asset base of the company has significantly increased. The Bank should sanction the loan, after consultation with the management of the company and evaluating the financial feasibility of the expansion plan.