QUESTION 1 Ratio analysis is another way to analyze the financial performance of the firm by looking at the relationship between various components of the balance sheet and income statement. True False QUESTION 2 When assembling a pro forma cash flow budget, ratio analysis is not useful or needed. True False QUESTION 3 Debt to Equity Ratio indicates, O how much new debt the firm should acquire next year O relative size of claims on a firm's assets between creditors and owners O risk of the firm not meeting its interest payments on loans O how often inventory is used up and replaced each year 2F 2 por