Define potential problems in using financial ratio analysis

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Reference no: EM132032190

Question: 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.

Reference no: EM132032190

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