Abernethy and Chapman

Certified Public Accountants

801 East Main Street
Richmond, Virginia 23235
Information from Security National Bank

Form Completed By: ___________________________________________

Date of Interview: ______________________________________________

(1) Does Lakeside Company have any existing /outstanding loan in your bank? If
yes, by how much?
Lakeside Company has no existing/outstanding loan in our bank.
(2) What is Lakeside Companys credit line in your bank?
As of September 30, 1990, we have given Lakeside Company a $324,100 credit limit
and requiring that cash in amount equal to 5% of the outstanding credit line remain
on deposit.
(3) Pertaining to your answer above, why did your bank decided to give Lakeside
such credit line?
Based on our assessment Lakeside, in terms of the distributorship area in the audio
equipment industry is capable of a considerable growth in the future and we dont
see any problem on the entity as going concern.
(4) Have you ever encountered any problem regarding Lakeside Companys way of
paying? If yes, please explain further.
No.
(5) Are you willing to increase Lakeside Companys credit line? Why or why not?
As we have said, we can only see growth on Lakeside Company, so if the entity will
continue to grow in the succeeding years, the bank will more likely increase their
credit line.