1) Discuss the need for comparative analysis. Identify the tools of financial statement analysis.

2) Why is it important for financial managers to understand the valuation process? 3) What are the three key inputs to the valuation process?

4) What are the key differences between debt and equity?

5) Financial ratio analysis is often divided into five areas: liquidity, activity, debt, profitability, and market ratios. Differentiate each of these areas of analysis from others. Which is of the greatest concern to creditors?