1. Starting with a base year (2019), convert the change in dollar amount on the income statement and balance sheet into a percent change for each year (the percent change from 2019 to 2020; and the percent change from 2020 to 2021). 

2. Compare each percent change over time (years in this case), and observe the trends to determine whether the trends of each income statement and balance sheet item is improving or getting worse. In other words, evaluate what is happening from year to year and whether the changes are positive or negative.

Answer rating: 100% (QA)

Step 1 Convert Dollar Amount Changes into Percent Changes Lets use the same data Income Statement Re... View the full answer