A loan officer at Southwest Bank is considering a loan application from Preferred Pet Care, Inc. He is concerned about the company's ability to make payments on the loan. The loan officer is likely to be interested in Preferred Pet Care's statement of cash flows.

Question

Quizplus · Accepted Answer

A statement of cash flows shows the cash inflows and outflows of a company, which can indicate its ability to make loan payments. Therefore, the loan officer would likely be interested in reviewing Preferred Pet Care's statement of cash flows.

A Loan Officer at Southwest Bank Is Considering a Loan