1. List and discuss two major difficulties illEMO=i associated with attempting to analyze a business by examining its financial statements:

2. To address the issues raised above, compare and contrast the use of 'dashboards' with financial ratios in evaluating business performance:

a. Define `Dashboard:'

b. How does the use of a Dashboard measure address the issues raised in Question 1, above? (why do most business owners insist on the necessity of knowing what the financials will look like a long time before they are ready for
release?)

3. Please discuss and illustrate by example the impact of price policy and sales mix on gross margin.

a. Impact of discounts and/or premiums (provide example of each)

b. What are the implications of your answer in 'a' above, for a 'differentiator' like Nordstrom, and/or 'discounter' like Walmart?

c. Impact of sales mix (provide example)

4. Please discuss how product/service/industry life cycle is reflected in the financial statements. Address specifically such impacts as profits, cash flow, level of competitive intensity, consumer sophistication, and growth rates, and the variation which occurs by cycle segment: Emergence, Growth, Maturity, Decline.

5. How would a major strategic initiative designed to increase market share from 40% to 75% be reflected in the financial statements. Specifically, what changes would you expect in the areas of gross margin, operating margin, return on assets, days in inventory, days in receivables?

a. Grass margin

b. Operating margin

c. Return on assets

d. Inventory

e. Receivables

6. Describe the concept of 'Float,' and how it is measured by financial ratios: