LOL. How are financial statements used to analyze a business a) Name the three main ways to analyze financial statements: b) An provides information about a company's financial condition. c) Another part of the annual report is which is intended to help investors understand the results of the operations and the financial condition of the company. d) What is the difference between unqualified opinions and qualified opinions? LO2. How do we use horizontal analysis to analyze a business a) What is the purpose of the horizontal analysis? b) Gross profit is $100,000 for 2019 and $120,000 for 2020. What is the amount and percentage of increase or decrease in gross profit? LO3. How do we use vertical analysis to analyze a business a) What is the purpose of the vertical analysis? b) Net Sales Revenue is $100,000 and gross profit is $40,000 for 2020. What is the percentage of gross profit to net sales revenue? c) A common-size statement reports only same percentages that appear in a d) In your own words, what is benchmarking? LO4. How do we use ratios to analyze a business? a) What information can the current ratio provide? What is the formula used to calculate current ratio? b) What information can the acid-test ratio provide? What is the formula used to calculate acid-test ratio? c) What information can the inventory turnover provide? What is the formula used to calculate inventory turnover ratio? d) What information can the gross profit percentage provide? What is the formula used to calculate gross profit percentage