Question: The two major forms of common-size analysis are horizontal analysis and vertical analysis. What type of information or insights can be obtained by using these
The two major forms of common-size analysis are horizontal analysis and vertical analysis. What type of information or insights can be obtained by using these two techniques of financial statement analysis? Explain how the output of horizontal analysis and vertical analysis can be compared to industry averages and/or competitive companies. Why does the net income or net loss of a company not equal the cash flow of a company? Explain why and give at least two examples
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