When evaluating a balance sheet, the two primary questions are ________?
1) whether a firm has sufficient short-term assets to cover its short-term debts and whether it is financially sound
2) whether a firm is profitable and whether it is generating excess cash that could be used to pay down debt or pay dividends
3) whether a firm has sufficient short-term assets to cover its short-term debts and whether it is profitable
4) whether a firm is profitable and whether a firm is financially sound
5) whether a firm's cost of sales is going up and whether it is generating excess cash that could be used to pay down debt or pay dividends