Horizontal Analysis of Income Statement and Balance Sheet

Prepare a three-year horizontal analysis of the income statement and balance sheet of your selected company. Discuss the importance and meaning of horizontal analysis. Discuss both the positive and negative trends presented in your company.

Ratio Analysis

Calculate the current ratio, quick ratio, cash to current liabilities ratio, over a two-year period. Discuss and interpret the ratios that you calculated. Discuss potential liquidity issues based on your calculations of the current and quick ratios. Are there any factors that could be erroneously influencing the results of the ratios? Discuss liquidity issues of competitive companies within the same industry.

here is the link to the company that I am doing the paper on. Its YUM Brands. http://www.sec.gov/Archives/edgar/data/1041061/000104106115000007/yum10k12272014.htm

This is the guidance that my professor personally provided to me. and I have found those within the article. Still unsure about what I am supposed to do with them? Please help..

"In order to perform the horizontal analysis and ratio analysis, youll need to use the consolidated income statement and balance sheet. The consolidated income statement is located on page 48 of the report, and the consolidated balance sheet is located on page 51."