Evaluate the benefits and the limits of financial ratio analysis. What other type(s) of analysis should accompany financial ratio analysis in order to assess more accurately the performance and the strategy of a company?

Discuss your assumptions on the key factors such as industry characteristics, firm characteristics, sales growth, profit margin, dividend policy, asset requirement, and leverage. How do these factors affect your forecasting of financial statements? And discuss why the circular reference occurs between the proforma income statement and balance sheet in your forecasting model?

Financial statement analysis is used to evaluate a firm's liquidity position, solvency position, and profitability position.  Respond to this statement with supporting arguments.

The business risk of a company is most accurately measured by the company's: a. Debt-to-equity ratio   B. Efficiency in using assets to generate sales   c. Operating leverage and level of uncertainty about demand, output prices and competition

Choose the correct answer

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Please include relevant parts and be thorough with explanation.  If you were a user of financial statements, what type of ratio/analysis do you think would be most important to use to make sure the company you have invested in is doing well?  What would you look for in a company that you were considering investing in?

Which of the following income statement figures would probably be the best indicator of a company's future performance? a. Total revenues b. Income from operations c. Net income d. Gross profit

In conducting a B/C analysis, (a) why is it usually necessary to take a specific viewpoint in categorizing cost, benefit, disbenefit estimates; and (b) what are two specific viewpoints that you can identify if the situation is a financial transaction between you and another person? Between your company and an international customer?

Discuss and give reasons as to why a business would want to use non-financial performance measures in addition to financial performance measures.