An investor who wished to answer the question, "Can the company sell its products?" should investigate the:
A)operating activities section of the cash flow statement.
B)current and projected inventory levels.
C)sales revenue trends and projected sales.
D)net income for the current period and projected net income for the next period.

Question

Quizplus · Accepted Answer

To determine if a company can sell its products, an investor should investigate the sales revenue trends and projected sales. This provides insight into the company's ability to generate revenue from the sale of its products. The operating activities section of the cash flow statement is important for understanding the company's cash flow, but it does not necessarily address the question of whether the company can sell its products. Current and projected inventory levels are important for understanding the company's inventory management, but they do not necessarily address the question of whether the company can sell its products. Net income is important for understanding the profitability of the company, but it does not necessarily address the question of whether the company can sell its products.

An Investor Who Wished to Answer the Question, "Can the Company