Managerial Accounting - In Class Notes - Chapter 13 1) Analysis tool # 1. What is horizontal analysis? Comparative Financial Statements vs Trend Analysis? 2) Analysis tool # 2. What is vertical analysis? What are the most common bases for two common-size statements? 3) Analysis tool # 3. What are the four building blocks for Ratio Analysis and (in summary) what do they measure and who uses them? 4) List the main liquidity and efficiency ratios. 5) List the main solvency ratios. 6) What are the main profitability ratios? 7) List the main valuation (market prospects) ratios. 8) Name a few limitations of financial statement analysis