1. Financial statement analysis:

is primarily used to identify account values that meet the normal standards.

provides useful information that can serve as a basis for forecasting future performance.

is limited to internal use by a firm's managers.

is enhanced by comparing results to those of a firm's peers but not by comparing results to prior periods.

2. Net capital spending is equal to:

ending net fixed assets minus beginning net fixed assets plus depreciation.

ending total assets minus beginning total assets plus depreciation.

ending net fixed assets minus beginning net fixed assets minus depreciation.

beginning net fixed assets minus ending net fixed assets plus depreciation.