1. Is the depreciation a source of funds ? Under what conditions might the "source" dry up? 2. Why do bankers closely analyze cash flow statements and/or sources and uses of funds statements in considering credit applications ? 3. Assuming that the return on real assets of a company exceeds the return on marketable Securities, why should a company hold any marketable securities? 4. Under what conditions would it be possible for a company to hold no cash or marketable securities? Are these conditions realistic ? 5. Explain how efficient inventory management affects the liquidity and profitability of the firm