All of the following can be determined from a statement of cash flows EXCEPT the company's ability to ________
A) pay its bills
B) manage production
C) buy new inventory
D) afford salary obligations
E) make investments in the business
B
Explanation: B) Information on a statement of cash flows is useful to creditors who are interested in determining a company's short-term health, particularly in its ability to pay its bills. In addition, it signals to investors that the business is generating enough money to buy new inventory and to make investments in the business. Accounting personnel, potential employees, or contractors may be interested in cash flow information to determine whether a company will be able to afford salary and other labor obligations.
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