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(free) 5 Kate's Cards In order to learn more about the industry and to meet people who could give her advice, Kate attended several industry

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(free) 5 Kate's Cards In order to learn more about the industry and to meet people who could give her advice, Kate attended several industry trade shows. At the most ecent trade show, Kate was introduced to Fred Abbott, operations manager of "Sentiments," a national card distributor. After much discussion, Fred asked Kate to consider being one of Sentiments' card suppliers. He provided Kate with a copy of the company's recent financial statements. Fred indicated that he expects that Kate will need to supply Sentiments with approximately 50 card designs per month. Kate is to send Sentiments a monthly invoice, and she will be paid approximately 30 days from the date the invoice is received in Sentiments' corporate office. Naturally, Kate was thrilled with this offer, since this will certainly give her business a big boost Kate has several questions. Answer the following questions for Kate Eval What type of information does each of Sentiments' financial statements provide to Kate? What financial statements would Kate need to evaluate whether Sentiments will have enough cash to meet its current liabilities? Explain what to look for. What financial statement would Kate need to evaluate whether Sentiments will be able to survive over a long period of time? Explain what to look for What financial statement would Kate need to evaluate Sentiments' profitability? Explain what to look for. Where can Kate find out whether Sentiments has outstanding debt? How can Kate determine whether Sentiments will be able to meet its interest and principal payments on any debts that it has? How could Kate determine whether Sentiments pays a dividend? In deciding whether to go ahead with this opportunity, are there other areas of concern that Kate should be aware of

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