Hi

I need Answers to these questions.

1.Although we depend on the use of these tools of financial statements analysis, we also have to remember their limitations. Who would like to begin talking about the limitations of these tools of analysis? What should we be careful about?

2.One way to analyze the performance of a business is to do a horizontal analysis of its financial position, operating results, and cash flows. The horizontal analysis can be a trend analysis or a comparative analysis. Does anybody want to expand on these terms? Have you done a horizontal analysis on your own employer's business? What is the difference between a trend analysis and a comparative analysis?

1. 3.Twooftheratiosthatareheavilywatchedbytheinvestmentcommunityareearningspershareandpriceandearningsratio.Whatcaveatswouldyouofferinconnectionwiththesetworatios?
2. 4.Asaninvestor,whichratioswouldyoubefocusedonthemost?Hint:Youranswerdependsgreatlyonwhetheryouprefergrowthorlessrisk.
3. 5.Doyouthinklookingatthehistoricalperformanceofabusinessismoreimportantthanthefuturevisionofthecompanywheninvesting?
5. Thanks