Question 1. Assume a company under analysis has few current liabilities but substantial long-term liabilities. Notes to the financial statements report the company has a "revolving loan agreement" with a bank. Is this disclosure relevant to your analysis?
Question 2. Choose a certain industry subject to peculiar financing and operating conditions calling for special consideration in drawing distinctions between current and non-current. How should analysis recognize this in evaluating short-term liquidity?
Question 3. Since cash generally does not yield a return, why does a company hold cash? Give an example.
Question 4. Describe the process and purpose of Special Purpose Entities (SPE).