Discuss some problems with analysis using financial ratios

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Reference no: EM131962602

1. Discuss some problems with analysis using financial ratios. Give at least three problems or limitations and be sure to explain the issues.

2. Blue River Enterprise sold 5000 products at $223 each, but 120 of them were returned for full refunds. If cost of goods sold equals 12% of net sales, and operating expenses are $145,000, how much would be the operating income?

3. Discuss the difference between a growing annuity and a growing perpetuity. Provide an example of each. Also explain the annuity transformation method.

Reference no: EM131962602

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