1. If you were to choose 4 financial ratios to evaluate a company’s performance, which 4 would you choose and why?
  2. What accounts on the balance sheet must be evaluated when completing the investing activities section of the statement of cash flows?
  3. Based on your working knowledge of the basic financial statements of a company, which is the most important to you and why?
  4. Let’s say that the income statement reported net income of $25,000 and depreciation expense of $10,000. Let’s also assume that the balance sheet reported an increase in accounts payable of $10,000, a decrease in accounts receivable of $9,000 and a decrease in bonds payable of $22,000. What would be your cash provided by operating activities based on the provided information?