The statement of cash flows helps analysts evaluate all but which of the following?
A) Source of cash used for debt repayments.
B) Differences between net income and net operating cash flow.
C) Ability of the company to generate profit.
D) Source of cash used to finance investing activities.
E) Source of cash used for plant expansion.

Question

Quizplus · Accepted Answer

The statement of cash flows helps analysts evaluate the sources and uses of cash for a company, including debt repayments, investing activities such as plant expansion, and financing activities such as issuing stocks or paying dividends. However, it does not directly evaluate the ability of the company to generate profit, as this is typically assessed through the income statement and other financial ratios.

The Statement of Cash Flows Helps Analysts Evaluate All but Which