STEP: $1$ of $3$

Frances works for a brokerage firm. Frances's boss asks her to analyze Blue Parrot Manufacturing's performance for the past three years

and to write a report that includes a comparative ratio analysis $($sometimes called a benchmarking analysis$)$ of the company's

performance.

Which of the following components would be best to include in a financial statement analysis?

A critique of the company's financial statements and a report of any misprints to be sent to the Securities and Exchange Commission.

A calculation of financial ratios and an evaluation of the comparative trends in the firm's financial position and performance over a

certain time period.