Using the narrative information and the financial data provided in Exhibits 3.36–3.41, your mission is to apply tools of financial analysis to determine the major causes of Grant’s financial problems. If you had been performing this analysis contemporaneously with the release of publicly reported information, when would you have become skeptical of the ability of Grant to continue as a viable going concern? To assist in this analysis, Exhibits 3.42–3.44 present selected ratio and growth rate information based on the following assumptions: 

  

Exhibit 3.42: Based on the amounts as originally reported for each year (Exhibits 3.36 and 3.37) Exhibit 3.43: Based on the amounts as retroactively restated for changes in accounting \ principles (Exhibits 3.38–3.40)  

Exhibit 3.44: Same as Exhibit 3.42 except that assets and liabilities reflect the capitalization of leases using the amounts presented in the case.