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n footnotes to the financial statements, companies disclose future commitments such as for leases and purchase commitments. How is this information useful to investors? It

n footnotes to the financial statements, companies disclose future commitments such as for leases and purchase commitments. How is this information useful to investors?

It allows investors to re-create a cash flow statement as if these amounts had been paid in the current period

It allows investors to re-state the balance sheet in their financial models

It helps them understand the amount of future operating expenses that are committed

This information is not useful to investors; it only helps potential future lenders to the company

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