Financial analysts look to the statement of earnings to determine which of the following?
A) whether the company has generated sufficient cash to pay its bills
B) whether the company has generated earnings from operations
C) if the company is collecting its receivables on time
D) if the company has invested too much cash in its inventory

Question

Quizplus · Accepted Answer

Financial analysts look at the statement of earnings to determine if the company has generated earnings from operations, which can indicate the company's profitability and ability to sustain operations. The statement of cash flows would provide information on whether the company has generated sufficient cash to pay its bills and if it is collecting receivables on time. The balance sheet would show if the company has invested too much cash in its inventory.

Financial Analysts Look to the Statement of Earnings to Determine