This topic is related with "Using Financial Statements for Strategic Analysis" in Chapter 10 entitled Financial Performance and Investment Appraisal. Please help me to provide explanations from numbers 1 to 7.

Financial statements can be used for the following:

1. To support and underpin the data and information that is inputted into strategic models (e.g. SPACE, Life Cycle Matrix SWOT analysis).

2. To analyze competitors who may pose a strategic threat by identifying their financial strengths and weaknesses, and how these might influence their strategic intent.

3. To support strategic acquisitions and mergers through a detailed financial analysis of potential candidates.

4. To analyze key customers and suppliers in order to anticipate demand and potential strategic activity.

5. To compare internal cost centers with comparable cost centers with in competitors, to identify significant variances, and to incorporate remedial action into the strategic planning process.

6. To identify the growth potential and borrowing power of the organization.

7. To assess if the company is vulnerable to decreases in revenue and possible corporate failure.