Question: Answer the following questions regarding financial statement analysis. a. There are three major financial statements, including Balance Sheet (B/S), Income Statement (I/S) and Cash Flow

Answer the following questions regarding financial statement analysis.

a. There are three major financial statements, including Balance Sheet (B/S), Income Statement (I/S) and Cash Flow Statement. Define each financial statement and use a timeline to illustrate their relationship. (Hint: B/S is a snapshot; I/S and Cash Flow Statement are a video).

b. To evaluate a companys performance, investors need a benchmark to which they can compare its financial ratios (i.e., Time-Trend Analysis and Peer Group Analysis). What are some of the problems associated with these comparisons?

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