Write: Make sure your response addressing the prompt is more than 200 words and that you include an in-text citation or a brief quote from the reading material where appropriate. Investors and creditors cannot evaluate a company's performance by solely looking at one year of data. There are three main ways to analyze financial statements: horizontal, vertical, and ratio analysis. - Explain horizontal and vertical analysis and how they are prepared to analyze comparative income statements and balance sheets. - Explain trend analysis and common size statements