A vertical analysis of financial statements computes (A) the increases and decreases of financial statement items year to year or period to period B the percentage of each financial statement item to a base amount Question 5 The FOCUS Company at the beginning of Chapter 9 is A Amazon B Microsoft Nike Question 6 Solvency is the ability of a company to pay its debts as they become due over a long period of time B the ability of a company to pay its current liabilities out of existing resources the ability of a company to pay dividends over a long period of time the ability of a company to earn net income over a long period of time 5 Question 7 If a company's debt ratio decreases, this indicates the company increased/decreased, the percentage of assets financed by decreased B increased