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Consider the following scenario: You work fer a brokerage firm. Your boss asked you to analyze Blue Parrot Manufacturing's peformance for the past three years
Consider the following scenario: You work fer a brokerage firm. Your boss asked you to analyze Blue Parrot Manufacturing's peformance for the past three years and to write a report that includes a benchmarking of the company's performance. Which of the following companents would be best for you to include in your financial statement analysis O A critique of the company's financial statements and a report of any misprints to be sent to the Securkies and Exchange Commission A calculation or financial ratios and an evaluation of the comparative trends in the firms m cial position and performance over a certain tene period Mast decision makers and analysts use five groups of ratios to examine the different aspects of a company's performance. Indicate whether each of the following statements regardng financial ratios are true or false? Statement True Faise A company exibitieg high liquidity ratio means it is Iikely to have enough resources to pay off its short-term obigations Asset management or activity ratias provide insights into management's efficiency in using a frm's working capital and ong-term assers Dett o" financial teverage ratios help analysts determine ithethera company has sufficient cash to repay its short-term debt O obligations One poss ble explsnation for an Increase in a tims, proscabiity ratios over a certain time span is thet the company's income O O has increased Market valse or narkert-based racos help analysts Tigure out what Investors and the markets think sbout the firm's growth prospects or autrent and future operational performance Rstio analysss an impartant component of evalusting company performance t can provide great Insights into Pow a company matches up agalnst itselr over time and zainst athir playes within the industry Which of the folowing statements represent a weakness or limitation of ratio analysis? Check all that appy Market data is not sufficiently considered. Seasonal factors can distort data. Window dressing might be in efTet. Howaver, ike many tools and techniques, ratio andlysishus a fem
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