Problem 1. Give an example of analysis of research and development expenses being important in assessing and forecasting earnings? What are some concerns in analyzing research and developing expenses?
Problem 2. What is the purpose in recasting the income statement for analysis? Give an example.
Problem 3. Where do we find data necessary for analysis of operating results and for their recasting and adjustment?
Problem 4. What happens to the reliability of current and pro forma statements when significant use is made of write-offs and depreciation methods?