The condensed statement of changes in financial position and detailed income statement information (in $000) for Tran Consulting Ltd. follow. Tran contracts professionals in the electronic data management field and provides services to clients around the globe. 

Instructions 

a. Using Excel, perform vertical analysis for all three years showing SFP amounts as a percentage of each year's total assets and showing statement of income amounts as a percentage of service revenue of each year. Round to one decimal place. 

b. Using Excel, perform horizontal analysis comparing 2020 with 2019 balances to highlight major areas of change. Round to one decimal place. 

c. Comment on a minimum of five key financial relationships and trends you see based on the analysis you have performed for Tran's consulting business.

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Assets 2020 2019 2018 Cash $ 1,200 $ 790 $ 660 Accounts receivable 3,800 2,850 2,270 Equipment (net) 5,700 4,800 3,900 Goodwill 2,125 1,385 1,385 $12,825 $9,825 $8,215 Liabilities and Equity Accounts payable $ 1,850 $1,350 $1,080 Long-term debt 7,100 6,200 5,400 Share capital Retained earnings 1,300 1,000 1,000 2,575 1,275 735 $12,825 $9,825 $8,215 2020 2019 2018 Service revenue $10,900 $8,150 $6,500 Contract labour 5,990 4,500 3,600 4,910 3,650 2,900 Administrative expenses 930 790 600 Travel expenses 630 580 400 Marketing expenses Depreciation expense 210 230 180 100 90 75 Other expenses 60 40 45 Total expenses 1,930 1,730 1,300 Income from operations 2,980 1,920 1,600 Interest expense 410 300 290 Income before taxes 2,570 1,620 1,310 Income taxes 1,100 700 550 Net income $ 1,470 $ 920 $ 760