1.Prior to beginning work on this discussion, read Chapter 7: “Financial Analysis Techniques.” Ultimately, analyzing a company’s financials can help an analyst make decisions. Gaining an understanding on future performance based on past performance in addition to other factors can help in making well-informed decisions. Describe how the financial analysis process can be used to forecast a company’s earnings.

**350 Words***

2.Prior to beginning work on this discussion, read Chapter 8: “Inventories.” Since revenue and profits are generated through the sale of inventory of merchandising and manufacturing companies, the evaluation of inventories is important in understanding their performance. Chapter 8 shares three inventory ratios that evaluate the efficiency and effectiveness of a company’s inventory management. Select one of the three ratios and explain how the ratio can be used to show financial strength of any publicly traded organization.

**350 Words***