Which of the following statements describe the principal reasons why stockholders and credit analysts use finical statement analysis?

1. To asses the risks associated with payments on debt and return on investment

2. To predict the amount of expected returns

3. To establish recommended dividend and interest payments

4. To evaluate top and middle level mangment

A) 1 & 2

B) 1,2 & 3

C) 1 & 4

D) 3 & 4