1. How does the use of common form income statements for a peer group allow the analyst to uncover capitalization abuses? (b) What is restructuring, and what is the dangerous trap that users of financial statements must avoid?

2. As an analyst, explain why a careful reading of the Notes to Financial Statements will disclose if a company is exaggerating revenues. (b) Explain how a low P/E multiple company can accelerate its earnings growth and thus become perceived as a high-growth stock.