Investigate the year$-$end balance sheet for changes in the size and financial position of the company $(2$ years of financial statement data$).$ To calculate changes, subtract the prior year balance from the current year balance. For example, the change in fixed assets between $2020$ and $2021=2021$ Fixed assets $-2020$ fixed assets.

Cash analysis: Sources$/$Uses of cash

Comment on how the company sources cash $($increase in a liability$/$decrease in an asset$)$

Comment on how the company uses cash $($increase in an asset$/$decrease in a liability$)$

Comment on any trends or changes you notice, for example, increases$/$decreases in fixed assets, cash, debt, etc. Identify those areas you consider of importance to the company and its stakeholders.

Common size analysis $(2$ years of financial statement data$)$:

Divide the income statement items by sales

Divide the balance sheet items by sales

Examples:

Current assets$/$sales

Inventory$/$sales

Accounts receivable$/$ sales

Current liabilities$/$sales

Accounts payable$/$sales

Fixed assets$/$sales

Total Assets$/$sales

Comment on any trends or changes you discover.

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