Three Approaches to Financial Analysis

For this assignment, please answer the following questions using complete sentences. Be sure to answer all parts of the questions completely.

1. What is vertical analysis? Why would it be useful to use in financial analysis?
2. What is horizontal analysis? Why would it be useful to use in financial analysis?
3. Why are ratios used in financial analysis?
4. How are these three approaches to financial analysis different? Why can't you rely on a single method?

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