1.Who reads financial statements? List at least three different categories of people. For

each category, provide an example of the type of information they might be interested

in and discuss why.

2.What is the DuPont Identity and how can a financial manager use it?

3.What can you learn from the management's discussion in the financial statements or

the notes to the financial statements?

4.How did accounting fraud contribute to the collapse of Enron?

5.Can a firm with positive net income run out of cash? Explain.

6.How can you use the balance sheet to assess the health of a firm?