Create a new excel worksheet in the same excel file and name it Common Base-Year. Same as Step 2, copy the financial statements from your first worksheet (Financial Statements) to this new worksheet. This will be the basis of your common base-year calculations. Right next to the financial statement information, construct the common base-year financial statements.

Remember common base-year approach is dividing each financial statement item in any given year by the same item in the base year. For our analysis, we pick 2016 as our base year so that you can compare the firm before and after 2016.

Common base-year financial statements:

1. Help us track down the changes related to a firms assets, liabilities, profitability, etc. over time.

2. Help us understand the composition of assets, and liabilities, as well as the expenses.

After constructing the common base-year financial statements of your company, write one paragraph discussion for common base-year balance sheet and one paragraph for common base-year income statement.