a$.$ Does the statement of cash flows provide information beyond the income

statement and balance sheet? Justify your answer.

b$.$ Interest expense costs the firm less than the actual expense, where as

dividends cost the entire outlay. Explain why this is true.

c$.$ Are short$-$term lenders, long$-$term lenders, and shareholders interested in

the same financial ratios? What does each party look for? Use ratios to justify

your answer.

d$.$ What implications, if any, do rapidly expanding sales have on cash? How can

a firm withstand those implications?