You are working as an Investment Analyst in an upcoming FinTech company. Your supervisor has asked you to identify the change in two companies' ability to repay all current debt and liabilities. Your supervisor has also asked you to see the difference in the companies' ability this year and last year to repay all current debt and liabilities.

Which of the following combinations (1) and (2) will you conduct for your supervisor?

Select one correct option.

Option A. I will conduct a (1) liquidity analysis using liquidity ratios; and (2) conduct a horizontal analysis of liquidity ratios.

Option B. I will conduct a (1) veritical analysis of the companies current liabilities; and (2) conduct a solvency analysis using leverage ratios.

Option C. I will conduct a vertical analysis of the companies' current assets and liabilities; and (2) conduct a solvency analysis using leverage ratios.

Option D. I will conduct a (1) solvency analysis using leverage ratios; and (2) conduct a horizontal analysis of leverage ratios.