Discussion Form

1. Explain what types of transactions are reported in the Operating, Investing, and Financing activity sections of the statement of cash flows.

2. Explain the price-earnings ratio and how it is used.

3. If you were given a set of Financial Statements, how would you go about analyzing them to learn about the company?

4. When inventory turnover is very high, what are the implications for the company with respect to its optimal acid-test ratio?