On December 2, 2001 Enron Corporation filed for bankruptcy and shocked the financial w Enron was the seventh largest company (by revenue) in the United States. How could thi profile company have failed? A number of articles and books have profiled the company's aggressive personnel policies where every year they "weeded out" a bottom tier of employ There have been significant discussions of Enron's use of special purpose entities and " off sheet" debt (however, there has been little discussion of off balance sheet assets). Other include Enron's use of "mark-to-market" accounting and other transactions designed to si allow Enron to hit targets so that managers could earn their bonuses. Some of these tran involved collusion with Enron's lenders. Early in 2002, Congress, the SEC, the Justice Department, and the press were all investigating this case for evidence of wrongdoing. find a number of articles in business and news magazines from mid December 2001 throu March 2002 with substantial details about the Enron collapse. However, there is a sign aspect of the story that is not told. Few have discussed what could have been le from Enron's financial statements. Required: Prior to coming to class, address the following questions based on your evaluation of Enro financial statements for the years 1999 and 2000 (available on the class website). An EX spreadsheet with Enron financial data is also available on the class website under the filer "Discussion Case - Enron (Data)" as is the Commonly Used Ratios under the filename " Dis Case - Enron (Ratios)." Problem 1: Company la. What was Enron's business? Please answer in one-half page or less. 1b. In order to understand Enron's financial statements, one must first understand two a the company's business. Please respond to the following questions using Enron's fina statements. . What were "Price Risk Management Activities"? What were "Merchant Assets and Investments"? 1c. How was Enron able to double revenues from 1999 to 2000? Please respond in one-H or less