8-8. What is the purpose of an income statement? What are the three numbers that receive the most attention when evaluating an income statement? Why are these numbers important?

8-9. Why do we need to compare a firm's financial ratio to industry norms?

8-11. What is the purpose of a balance sheet?

8-12. What are the major categories of assets and liabilities on a balance sheet? Briefly explain each category

8-13. How do you compute a firm's debt ratio? What is the significance of this ratio?