Which of the followings is INCORRECT regarding the use and limitations of ratios? Inflation cannot distort values in financial statements, especially in balance sheet because financial ratio analysis already takes the inflation into consideration. Seasonal factors can be one of factors that can distort the financial ratio analysis. Hence, ratio analysis must be interpreted carefully. One financial ratio can tell two different stories about the financial status. Window dressing is a technique to make the financial statements fancier than they really are. Ratio analysis using financial statements should take the Window dressing into account. Many firms have multi-divisional structure so it is difficult to develop a meaningful financial ratios' analysis