Problem 1.1

What types of questions can be answered by analyzing financial statements?

Would an investment generate attractive returns?

What is the degree of risk inherent in the investment?

Should existing investment holdings be liquidated?

Does the cWill cash flows be sufficient to service interest and principal payments to support the firms borrowing needs?

company provide a good opportunity for employment, future advancement, and employee benefits?

How well does this company compete in its operating environment?

Is this firm a good prospect as a customer?