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As a lender I would see this as a positive.
B.) The Cats and Dogs Company borrowed $2000.00 from the bank on March 1. This is a 1-year, 12% note, with both principal and interest to be repaid on February 28 of the next year.
This shows in the balance sheet under liabilities. I think it's a positive that this is first a small loan, and second that The Cats and Dogs Company has made $900.00 in revenue in its first month. I don't see why this loan can't be paid off on time, if not before it's due.
C.) The company earned $900.00 in revenue.
This shows in accounts receivable and is an asset. Revenue is good, but a more aggressive business plan should be created in order to recoup the owner's initial investment and the payback of the loan...
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