The statement of cash flows helps analysts evaluate whether a company has enough cash to
A)Make debt repayments
B)Pay for future plant expansion
C)Pay for unexpected law suits
D)Finance investments
E)All of these

Question

Quizplus · Accepted Answer

The statement of cash flows provides information about a company's operating, investing, and financing activities, which can help analysts assess whether the company has sufficient cash to make debt repayments, finance future plant expansion or investments, and manage unexpected events such as lawsuits. Therefore, the best choice is E, which includes all of these options.

The Statement of Cash Flows Helps Analysts Evaluate Whether a Company