11 Nov FN

1. A company’s financial statements consist of the balance sheet, income statement, and statement of cash flows. Describe what each statement tells us and their limitations. 

2. What is the purpose and importance of financial analysis?  What are financial ratios? Describe the “five-question approach” to using financial ratios.  What are the limitations of financial ratio analysis? If we divide users of ratios into short-term lenders, long-term lenders, and stockholders, in which ratios would each group be most interested, and for what reasons? 

Instructions: Your initial response should be at least 250-words with at least one scholarly journal reference. Support your main response with at least 1 scholarly journal reference in addition to the course materials. Please note Wikipedia, Investopedia and similar websites are not credible academic references. Use the Online Library to research credible references. Respond to at least two of your classmates with a minimum of 100 words and include direct questions. Include in-text citations and references in APA format. Refer to Forums Grading Rubric for additional guideline