Mark's Tire is applying to the Goodday Tire Company for credit. Goodday has requested that Mark's provide a copy of its latest income statement as well as a pro-forma cash flow statement before Goodday will review Mark's credit application. Goodday wants to check Mark's:

Question

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Goodday Tire Company is interested in Mark's Tire's capacity, which refers to the business's ability to repay the loan. This is assessed through financial statements like the income statement and cash flow projections, which show the company's profitability and cash flow, respectively.

Mark's Tire Is Applying to the Goodday Tire Company for Credit