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March 31, 2022

Horizontal and Vertical Analysis

APA (edition "APA 6"), Business and Management

Investors and creditors cannot evaluate a companys performance by solely looking at one year of data. There are three main ways to analyze financial statements: horizontal, vertical, and ratio analysis.

Explain horizontal and vertical analysis and how they are prepared to analyze comparative income statements and balance sheets.

Explain trend analysis and common size statements.

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