In Chapter 3 & 4, we learned about financial statements & ratio analysis. Comment on two questions:

1 - (2 points)

Which financial statement is most useful to financial analysis and why? (Use good writing skills and proper terminology.)

2 - (3 points)

Identify two limitations that should be considered to evaluate a company that do not include financial ratios and explain why. (Use good writing as if to explain what needs to be considered beyond ratios.)