Agree or Disagree and Why?

Managers analyze financial statements to monitor measurements such as debt leverage, cost, sales, assets, and liabilities. Financial statements help managers assess the achievement of financial goals. It was also said that managers analyze their competitions financial statements and compare them to their internal finances; this is very useful in developing tactical options and strategies. Balance sheets and financial statements present a certain amount of information and date to managers. Horizontal analysis is used in the review of a companies financial statement over multiple periods; it allows financial statements users to quickly spot trends and growth patterns. On the other hand, Vertical analysis is a method of financial statement analysis in which each line item is listed as a percentage of a base figure within the statement. While horizontal analysis looks changes in the dollar amounts in a companys financial statements over time, the vertical analysis looks at each line item as a percentage of a base figure within the current period. (Ch 14, Ozzy Tiscareno)