1. If we divide users of ratios into short-term lenders, long-term lenders, and stockholders, which ratios would each group be most interested in, and for what reasons?

2. Is there any validity in rule-of-thumb ratios for all corporations, such as a current ratio of 2 to 1 or debt to assets of 50 percent?

3. What effect will disinflation following a highly inflationary period have on the reported income of the firm?

4. Why might disinflation prove favorable to financial assets?

5. Comparisons of income can be very difficult for two companies, even though they sell the same products in equal volume. Why?