11.13 The statement of cash flows should not be used to evaluate an entitys ability to: LO5 a. earn profit. b. generate future cash flows. c. pay dividends. d. meet obligations.

11.14 Free cash flow provides an indication of a companys ability to: LO5 a. generate profit. b. generate cash to pay dividends. c. generate cash to expand investment. d. both (b) and (c).

11.15 Which of the following provides a useful comparison with the profit margin? LO5 a. Capital expenditure ratio. b. Cash return on sales ratio. c. Cash debt coverage. d. Current cash debt coverage.