Liquidity and efficiency are the ability to meet short-term obligations and 10 efficiently generate revenue. Market prospects are the ability to provide financial rewards sufficient to attract and retain financing. Profitability is the ability to generate positive market expectations. Financial reporting includes not only general purpose financial statements, but also information from SEC filings, press releases, shareholders' meetings, forecasts, manage men letters, auditor's reports, and Webcasts. The building blocks of financial statement analysis include (1) liquidity. (2) salability. (3) solvency, and (4) profitability. General-purpose financial statements include the (1) income statement. (2) balance sheet. (3) statement of stockholders' equity (or statement of retained earnings), (4) statement of cash flows, and (5) notes to these statements. Standards for comparison are not generally necessary when making judgments about a company's performance. Standards for comparison when interpreting financial statement analysis include competitor and industry performance data. Measures taken from a selected competitor or a group of competitors are often excellent standards of comparison for analysis. Intra-company analysis is based on comparisons with competitors. Liquidity and efficiency are the ability to meet short-term obligations and 10 efficiently generate revenue. Market prospects are the ability to provide financial rewards sufficient to attract and retain financing. Profitability is the ability to generate positive market expectations. Financial reporting includes not only general purpose financial statements, but also information from SEC filings, press releases, shareholders' meetings, forecasts, manage men letters, auditor's reports, and Webcasts. The building blocks of financial statement analysis include (1) liquidity. (2) salability. (3) solvency, and (4) profitability. General-purpose financial statements include the (1) income statement. (2) balance sheet. (3) statement of stockholders' equity (or statement of retained earnings), (4) statement of cash flows, and (5) notes to these statements. Standards for comparison are not generally necessary when making judgments about a company's performance. Standards for comparison when interpreting financial statement analysis include competitor and industry performance data. Measures taken from a selected competitor or a group of competitors are often excellent standards of comparison for analysis. Intra-company analysis is based on comparisons with competitors