A company reports accounting data in its financial statements. This data is used for financial analyses that provide insights into a company’s strengths, weaknesses, performance in specific areas, and trends in performance. These analyses are often used to compare a company’s performance to that of its competitors or to its past or expected future performance. Such insight helps managers and analysts improve their decision making.

Consider the following scenario:
You work for a brokerage firm. Your boss asked you to analyze Blue Parrot Manufacturing's performance for the past three years and to write a report that includes a benchmarking Of the company's performance.
Which of the following components would be best for you to include in your financial statement analysis?

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