Question: Performance Objective: (a) Identify two things that…
Performance Objective: (a) Identify two things that are useful to know about each of the following financial statements of a firm and explain how this knowledge is useful: (1) balance sheet; (2) income statement; (3) cash flow statement. (b) Identify two financial ratios that are useful in analyzing a balance sheet, income statement, or cash flow statement, and provide an example of how these ratios can be used by a firm’s managers or other market analysts. (c) Describe two potential problems in using financial ratio analysis in financial management.
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