Question 3 10 marks Barton Company requested a large loan fromFirst National bank to acquire a large piece of land for futureexpansion. Bart reported current assets of R1,900 ,000 (R430 000 incash) and current liabilities of R1,075,000. FNB denied the requestfor a number of reasons. When the Company received the news, thefinancial controller immediately paid R420 000 that was owed toseveral trade creditors. He then asked the bank to reconsider theloan application. Based on the abbreviated facts would you adviseFNB to advance the loan? Why? Are the actions of the financialcontroller ethical? 1) What could be the reasons for the denial ofthe request for a loan? (2) 2. After the actions of the controllerwhat would be your advice for FNB and why (7) 3. Are the actions ofthe financial controller ethical? (1) NB: limit your answer for all3 sub-questions to 500 words or less.
