1. What is the difference between horizontal and verti 7. cal analysis of financial statements? 2. What is the advantage of using comparative state ments for financial analysis rather than statements 8. for a single date or period? 3. The current year's amount of net income after income tax is than that of the this indicate an improved operating performance 9 Discuss 4. low would the current and quick ratios of a service business compare? 5. a. Why is it advantageous to have a high inventory turnover? b. possible to have a high inventory turnover and a high number of days' sales in inventory Discuss. 6. What do the following data taken from a comparative balance sheet indicate about the company's ability borrow additional funds on a long-term basis in the current year as compared to the preceding year? Current Year Preceding Year $1,260,000 $1,360,000 Fixed assets (net) Total long-term liabilities 300,000 400,000