Instruction

1. What is the difference between comparitive financial
statements and common-size comparitive statements?
2. What is the advantage of using comparative statements for financial analysis rather than statements for a single date or period?
3. How would the Current and Quick Ratios of a service business compare?
4. How do you calculate the Price / Earnings Ratio?
5. What three factors would influence your evaluation as to
whether a company’s current ratio is good or bad?