The basic inputs to an effective financial analysis are a firm's income statement and the balance sheet.

Question

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The income statement and balance sheet provide essential financial information about a firm and are the key inputs for financial analysis. Other inputs may include cash flow statements, management reports, market research, and industry benchmarks, but the income statement and balance sheet are the foundation for analyzing a firm's financial health and performance.

The Basic Inputs to an Effective Financial Analysis Are a Firm's