1. Two companies are in the same industry. Company A uses the LIFO method of inventory valuation, and Company B uses FIFO. What difficulties does this present when comparing the two companies? 2....

1. Two companies are in the same industry. Company A uses the LIFO method of inventory valuation, and Company B uses FIFO. What difficulties does this present when comparing the two companies?

2. Distinguish between horizontal and vertical analyses. Why is the analysis of commonsize statements called vertical analysis? Why is horizontal analysis sometimes called trend analysis?