Reflection Paper 1 In a paper of between 250 and 600 words (1 to 2 pages), respo

Reflection Paper 1
In a paper of between 250 and 600 words (1 to 2 pages), respond to the following reflection prompt.
In your reading for this module, you learned about a variety of techniques commonly used for financial statement analysis including trend percentages, component percentages, and ratio analysis to specifically assess liquidity and profitability. You will explore these financial statement analysis tools in this reflection paper. You are encouraged to incorporate your own professional experience and perspectives into your paper as appropriate.
Imagine that you’re an executive leader (CEO, CFO, COO, etc.). The board of directors has tasked you with evaluating the organization’s financial results over the past three years. The board specifically wants to know how the business has been trending and where they stand in terms of liquidity, credit risk, and profitability.
Briefly identify the type of business and industry that you are assuming for your analysis.
Explain how trend analysis of the income statement and balance sheet may help to support your conclusions that you present to the board.
Discuss how component analysis could be helpful in comparing the company’s results against others in the industry.
Select three specific financial statement ratios that you would use to analyze the business. Explain why you selected the ratios and what they reveal about a company’s performance or financial position. [MO 1.1, MO 1.2]