27. Profitability analysis evaluates the ability of a company to generate future earnings. This ability depends on the relationship between the company's operating results and the assets the company has available for use in its operations. Thus, the relationships between income statement and balance sheet items are used to evaluate profitability.

A. True

B. False: Profitability analysis evaluates the ability of a company a company's ability to convert assets into cash.

C. False: This ability depends on the company's ability to make its periodic interest payments and repay the face amount of debt at maturity

D. False: the relationships between statement of cash flows and balance sheet items are used to evaluate profitability

E. none of the above