What is a creditor's objective in performing an analysis of financial statements?

1) To determine whether an investment is warranted by estimating a company's future earnings stream.

2) To determine if the firm would be a good place to obtain employment.

3) To decide whether the borrower has the ability to repay interest and principal on borrowed funds.

4) To determine the company's taxes for the current year. 5) To uncover financial statement fraud.