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Legal considerations: Organizations might engage in various public activities In this publication we cover the basics of using ratio analysis to analyze financial
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Financing activities are reported in the second section, where interest expense, taxes, and preferred dividends are subtracted to arrive at net income Table 2 2
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Financial analysis provides a practical means of assessing the profitability of financial statements projecting these activities should include income statements,
Answers to Exercises
232 ANSWERS TO EXERCISES (b) Table AB 4 matches the changes In the ratios with the However, this illustrates one of the limitations of ratio analysis
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