Write a 3-4 page paper discussing the use of ratios in analyzing financial statements.

What are the benefits of using ratios when analyzing the balance sheet, income statement, and cash flow statement of an organization?

If you had to choose two key ratios, which two would best serve your purposes and why?

What are the dangers of overanalyzing using ratio analysis?

What are the pitfalls for shareholders? For the owner of a small company? For a banker assessing risk?

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