1. Discuss some problems with analysis using financial ratios. Give at least three problems or limitations and be sure to explain the issues.
2. Blue River Enterprise sold 5000 products at $223 each, but 120 of them were returned for full refunds. If cost of goods sold equals 12% of net sales, and operating expenses are $145,000, how much would be the operating income?
3. Discuss the difference between a growing annuity and a growing perpetuity. Provide an example of each. Also explain the annuity transformation method.