Name the three main ways to analyze financial statements

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Reference no: EM132829461

Question 1: Name the three main ways to analyze financial statements:

Question 2: What is the purpose of the horizontal analysis?

Question 3: Gross profit is $100,000 for 2019 and $120,000 for 2020. What is the amount and percentage of increase or decrease in gross profit?

Question 4: What is the purpose of the vertical analysis?

Question 5: Net Sales Revenue is $100,000 and gross profit is $40,000 for 2020. What is the percentage of gross profit to net sales revenue?

Question 6: What information can the current ratio provide? What is the formula used to calculate current ratio?

Question 7: What information can the acid-test ratio provide? What is the formula used to calculate acid-test ratio?

Reference no: EM132829461

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