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Explain two users of financial ratios and which financial ratios they might be most interested in. Explain why these ratios would be particularly important to the users.

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Collen Von
Collen VonLv2
28 Sep 2019
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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.

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?

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