Financial Statement Analysis. As you noted in the chapter, there are C 3 common analytical techniques used to analyze a company's financial statements: 1) Horizontal Analysis 20 Vertical Analysis 3) Ratio Analysis Each technique can be used to assess the financial health and future prospects of a Company. The ratios that can be used fall into three categories: 1) Liquidity Ratios measure the short-term ability of the enterprise to pay its maturing obligations and to meet unexpected needs for cash. In your book on page 693 the liquidity ratios are from Working Capital down to and including Total Asset Turnover. 2) Profitability Ratios measure the income or operating success of an enterprise for a given period of time. In your book on page 693 the profitability ratios are from Gross Margin Percentage down to and including Book Value per Share 3) Solvency Ratios measure the ability of the enterprise to survive over a long period of time. In your book on page 693 the solvency ratios are Times Interest Earned, Debt-to-Equity ratio and Equity Multiplier. In the text the authors state that an analyst should not rely solely on financial statement analysis when evaluating a company? Do you agree or disagree? Why?

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.