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 answers are correct.

Question

Quizplus · Accepted Answer

The statement of cash flows provides information on a company's sources and uses of cash, allowing analysts to assess the company's ability to make debt repayments, pay for future plant expansion, cover unexpected expenses such as lawsuits, and finance investments. Therefore, all of the answers listed are correct.

The Statement of Cash Flows Helps Analysts Evaluate Whether a Company