Ask Question
BusinessBusiness
4 December, 21:08

Creditors analyze the statement of cash flows to determine:

a. whether or not the company can pay principal and interest on its debt.

b. total interest earned during the period.

c. the quality of the company's earnings.

d. if management was overpaid.

+1
Answers (1)
  1. 5 December, 00:21
    0
    a. whether or not the company can pay principal and interest on its debt.

    Explanation:

    Creditors are banks or corporations from which a company can borrow funds (capital). Before a company is approved for borrowing, the creditors would look into their financial statements like the balance sheet, income statement and statement of cashflows. However, in the statement of cashflows, the creditors would be interested in how effective a company is in paying the principal and interests on the loans they currently have.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Creditors analyze the statement of cash flows to determine: a. whether or not the company can pay principal and interest on its debt. b. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are $10,000.
Answers (1)
Do you know what cpp means
Answers (1)
An entity where ownership is divided into shares of stock is a: A. proprietorship. B. trade agreement. C. mutual agency. D. corporation.
Answers (1)
Mike is registering his real estate company. He has a license and all of his sales associates and broker associates have licenses. Why does the company need to be registered?
Answers (1)
When you choose to live with a roommate on a collage campus, you can live there for free. True or False?
Answers (1)
New Questions in Business
The ending Retained Earnings balance of Boomer Inc. decreased by $1.5 million from the beginning of the year. The company declared a dividend of $4.2 million during the year. What was the net income for the year?
Answers (1)
If there is a recessionary gap in the short run, the Federal Reserve can eliminate the gap in the short run by undertaking a policy action that raises aggregate demand.
Answers (1)
Connor Lamps Inc. purchased factory equipment in January 2015 for $575,000. In March 2018, this equipment was sold for $105,000 cash. At the date of sale, the accumulated depreciation account totaled $325,000.
Answers (1)
What would a store and bank both charge fees for?
Answers (1)
A company's unit costs based on 100,000 units are: The normal unit sales price per unit is $165. A special order from a foreign company has been received for 5,000 units at $135 a unit.
Answers (1)
Home » Business » Creditors analyze the statement of cash flows to determine: a. whether or not the company can pay principal and interest on its debt. b. total interest earned during the period. c. the quality of the company's earnings. d. if management was overpaid.
Sign Up Forgot Password?