How should handle such situations in financial statement

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Problem 1: What does gross profit margin, operating income margin, and net income margin represent? When is net income margin higher than operating income margin or gross profit margin? How should we handle such situations in financial statement analysis?

Problem 2: What information can we learn from the statement of cash flows? Why do some investors examine the statement of cash flows first? Why do firms misclassify cash flows? How can we detect cash flow misclassifications?

Reference no: EM132934317

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