Which of the following is considered to be cash flow from operating activites?

• cash paid to suppliers
• cash paid for loan payments
• cash paid for dividends
• cash received from the sale of plant asset

Which of the following is not a reason for managers to use financial statements?

• to assess how their company appears to creditors
• to assess the ability of customers to meet their payment obligations
• to see what their competitors' contribution margins are
• to assess the long term viability of key customers

If a company has a current ratio of less than one, and a very high debt to equity ratio, managment might be reluctant to:

• sign an agreement with this company to become a major supplier
• sell this company goods on credit
• expand capacity to better serve the needs of this company
• all of the above