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BobLawson is the president of his company his CFO is Mark Z

    BobLawson is the president of his company; his CFO is Mark Ziegler. Likemany entrepreneurs, Bob is more concerned about the big picture andleaves the day-to-day accounting details up to Mark. Bob reviews thefinancial statements regularly; however, Mark would like to help himunderstand how to make better use of the company’s financial statementsto gauge the changes in his business and plan for the future. Eventhough Mark generates all statements in terms of dollars and percents(common-size statements), Bob ignores the common-size statements. Thetwo have agreed to meet next week. Mark plans to begin his coaching with the following topics:Making comparisons using standardized financial statements Calculating and understanding performance ratios Determining the company’s profitability and growth Drawbacks associated with financial statement comparisonsNowthat Bob has a better understanding of financial ratios, he’s anxiousto begin comparing last year’s performance with this year’s performance.What

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