1. The analysis of two firms within the same industry require an analyst to consider the

		Depreciation methods used by each firm.
		Expected asset lives assigned by each firm to its fixed assets.
		Both the depreciation methods used by each firm and expected asset lives assigned to its fixed asset by each firm.
		Neither the depreciation methods used by each firm nor the expected asset lives assigned to its fixed assets by each firm.

2. Redlands Inc. acquired equipment for $440. The firm depreciated the equipment on a straight-line basis over ten years. The firm assumed the equipment would have a $40 residual (salvage) value at the end of its useful life. Redlands reported the net value of the equipment on its balance sheet at $320. The remaining life of the equipment is

		8 years.
		7 years.
		3 years.
		2 yearss

3. Of most concern to profitability analysis would be a firm that reports a disproportionately large percentage of

		Current assets.
		Property, plant, and equipment.
		Intangible assets.
		Other assets.