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For each question, determine which part of the financial statements (Income statement, balance sheet, or cash flow statement) would provide the information required.

Question 18 The following are six questions that users of accounting information might ask about Agusta Auto Towing (Agusta). Instructions For each question, determine which part of the financial statements (Income statement, balance sheet, or cash flow statement) would provide the information required. 1. 2. 13. Decision Financial statement used Can Agusta's operations generate sufficient cash to make payments on a term loan? Does Agusta have sufficient assets to provide security for a mortgage loan? Should Agusta continue its current business, or look for more profitable opportunities in a different line of business? Were the profit-sharing bonuses paid to unionized Jemployees equal to the percentage of profit stated in the employment contract? Was the amount of harmonized sales taxes (HST) that Agusta remitted to the tax department equal to 13% of its revenue, as required by law? Does Agusta have enough money in the bank to pay Tout drawings to the owner? 4. 15 16. Question 18 The following are six questions that users of accounting information might ask about Agusta Auto Towing (Agusta). Instructions For each question, determine which part of the financial statements (Income statement, balance sheet, or cash flow statement) would provide the information required. 1. 2. 13. Decision Financial statement used Can Agusta's operations generate sufficient cash to make payments on a term loan? Does Agusta have sufficient assets to provide security for a mortgage loan? Should Agusta continue its current business, or look for more profitable opportunities in a different line of business? Were the profit-sharing bonuses paid to unionized Jemployees equal to the percentage of profit stated in the employment contract? Was the amount of harmonized sales taxes (HST) that Agusta remitted to the tax department equal to 13% of its revenue, as required by law? Does Agusta have enough money in the bank to pay Tout drawings to the owner? 4. 15 16

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