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Discuss the horizontal and vertical analysis of a financial statement, and how each is used to help financial statement users make better decisions. Also, explain the liquidity, solvency, and profitability ratios introduced throughout the text. Describe how the ratios are used in analyzing a firm’s liquidity, solvency, and profitability. Your answer should illustrate understanding of financial statement analysis, including ratios. A minimum of 100 to 200 words is required for your answer.
APA style.
Kimmel, P.D., Weygandt, J.J., & Kiesko, D.E. (2013). Financial accounting: tools for business decision making (7th ed.), Hoboken, NJ: John Wiley & Sons, Inc.
