Indicate Whether Each of the Following Statements About Financial Statement

Short Answer

Indicate whether each of the following statements about financial statement analysis is true or false.
Ratio analysis may involve studying relationships between an item reported on the balance sheet and another reported on the income statement.______
Comparing sales in Year 2 with sales for Year 1 is a form of vertical analysis.______
Comparing net income in Year 2 with sales for Year 2 is a form of horizontal analysis.______
Liquidity ratios measure a company's ability to generate cash flows in the short term.______
Working capital is calculated by using the following formula: current assets - current liabilities.______