(a)Financial statement analysis involves gaining an understanding of an organization's financial situation by reviewing its financial reports. The results can be used to make investment and lending decisions. You are required to list and explain the types of ratio that commonly used to analyze the performance of the company. (15 marks)

(b) Ghifari, the owner of Globe Enterprise, just attended a seminar on ratio analysis with you, his account executive. However, he was half an hour late. He missed the part where the speaker talked about the objectives, benefits and the limitations on the ratio analysis. He asked for your help to explain to him THREE objectives, benefits and limitations of ratio analysis respectively. (10 marks)