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    Identify which financial statement would help answer questio

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    Which financial statement helps you figure out:

    Is the firm generating enough cash to repay is debt to invest in new products?

    Does the firm generate enough internal funds to support investment, or does new stock need to be issued?

    Is the firm financed with too much debt?

    How profitable has the firm been?

    Can the firm meet all its short -term obligations?

    How much of the firm's earnings are put back into the company for reinvestment, and how much is paid out as dividends?

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    Solution Preview

    Is the firm generating enough cash to repay is debt to invest in new products?

    You need the cash flow statement for this -- see operating cash flow!

    Does the firm generate enough internal funds to support investment, or does new stock need to be issued?

    Internal funds = operating cash ...

    Solution Summary

    The solution identifies the financial statement that will answer the question.

    $2.19

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