Your company is taking the loan of $1,260,000 for a new business plan. The interest rate is set at 6%. The entire debt must be paid in 5 years in an annuity payment plan. The Present Value Interest Factor for an Annuity (PVIFA at 6% interest rate for 5 years) is 4.2000. (All other information remains the same as previous two questions.)

You want to find out whether your operations are strong enough to handle the interest payments on this loan. Which document would you analyze for this purpose?

Group of answer choices

1) The Income Statement

2) The Balance Sheet

3) The Cash Flows Statement

4) all of the above simultaneously