Assignment Tasks:

The tasks outlined below are to be completed based on the information provided in the attached excel file.

• Perform a Horizontal analysis for the year 2018 to year 2021 Income Statement and Balance sheet.
• Perform a Vertical analysis (common size statements) for the year 2018 to year 2021 Income Statement and Balance sheet.
  • Always consider the first year as the base year for the horizontal analysis.
• Provide your observations on the trends of the business, based on your horizontal and vertical analysis.
• Assess the business liquidity by using liquidity ratios.
  • Is the company's position improving or deteriorating? Explain your answer.
• Assess the business profitability by using profitability ratios.
  • Is the company's position improving or deteriorating? Explain your answer.
• Based on the above analysis (horizontal, vertical, and ratios), write a brief financial summary of the business, and explain any observed risks/weaknesses for the business.

Patel's Fabrics Ltd. Comparative Income Statements