Three types of analyses are explained in the chapter: horizontal, vertical, andratio.InstructionsWith the class divided into five groups, each group will take one of the following topics:horizontal analysis, vertical analysis, ratio analysis-liquidity, ratio analysis-solvency,and ratio analysis-profitability. For horizontal analysis and vertical analysis, the groupshould explain the analysis and illustrate its application to the balance sheet and incomestatement. For each category of ratio analysis, the group should state the formula andpurpose of each ratio.