Final answer:
Caleb King should use all the tools mentioned (horizontal, vertical, and ratio analysis, review of the auditor's opinion, MD&A, notes to financial statements, and comparison with competition and industry) to comprehensively evaluate the financial health and competitiveness of Orange Corporation.
Step-by-step explanation:
To evaluate Orange Corporation for potential investment, Caleb King should use a combination of tools, including horizontal analysis, vertical analysis, and ratio analysis. These tools assist in understanding the financial health and trends of the company over time by comparing line items in financial statements to those from previous periods (horizontal analysis), expressing each item on a financial statement as a percentage of a selected base amount (vertical analysis), and assessing company performance with ratios that compare different financial statement items (ratio analysis).
Caleb should also review critical sections of the company's annual report, such as the auditor's opinion, which gives credibility to the financial statements; the management's discussion and analysis (MD&A), which provides management's perspective on the financial results and future outlook; and the notes to the financial statements, which include important disclosures and additional details not present in the main statements.
Moreover, for a comprehensive understanding, Caleb should compare Orange Corporation with its competitors and the industry by reviewing multiple periods (complete review), ensuring he gains insight into the company's market position and performance trends relative to its peers.
Therefore, the best option for Caleb would be F. All of the above, as each tool and method, provides unique insights into the financial health and competitive position of Orange Corporation.