Response to the following questions:
1. Identify the four major sections of an income statement that are potentially reportable.
2. Explain the difference between financial reporting and financial statements.
3. What three factors would influence your evaluation as to whether a company's current ratio is good or bad?
4. Suggest several reasons why a 2:1 current ratio might not be adequate for a particular company.
5. Why is working capital given special attention in the process of analyzing balance sheets?
6. What does the number of days' sales uncollected indicate?