Problem:
Question 1: What are the primary limitations of ratio analysis as a technique of financial statement analysis?
Question 2: What problems may be indicated by an average collection period that is substantially above or below the industry average?
Question 3: What problems may be indicated by an inventory turnover ratio that is substantially above or below the industry average?
Question 4: Discuss the general factors that influence the quality of a company's reported earnings and its balance sheet.
Note: Please describe comprehensively and provide step by step solution.