Statement Classification Indicate whether the

(1) operating, (2) investing, or (3) financing section of the statement of cash flows is most likely to contain the information needed to answer the following questions. If the information is in more than one section, so indicate. If information from other financial statements is needed, so indicate.

a. Will there be enough cash to pay the accounts payable when they are due?

b. Are there unpaid wages, and will cash be available to make the payments?

c. Will there be enough cash to pay off the long-term debt when it is due without additional borrowing?

d. Does the company consistently generate enough cash to pay dividends?

e. How dependable are the company’s sources of cash?

f. Has the company expanded in the past year and, if so, how was the expansion financed?

g. Does the company have sufficient cash inflows to make required interest payments?

h. Is the amount of cash generated through operating activities greater than the amount reported as net income?

i. Are receivables being collected on a timely basis?

j. How are the cash flows affected by unusual transactions or events such as losses from restructuring or write-offs of obsolete production facilities?

k. Were any bonds converted into common stock during the period?