Prepare common size (vertical analysis) reports for the statement of financial position and income statement shown below. What can you learn from this analysis?

Statement of financial position extracts as at 30 June 2018 2019 2020 $ $ $ Current assets Cash 3,000 16,000 20,000 Accounts receivable 100,000 45,000 35,000 Inventories 120,000 68,000 65,000 Total current assets 223,000 129,000 120,000 Non-current assets 240,000 210,000 198,000 Total assets 463,000 339,000 318,000 Income statements for the year ended 30 June 2019 2020 $ $ Net sales (all credit) 600,000 500,000 Less cost of sales (360,000) (280,000) Gross profit 240,000 220,000 Less other expenses General (170,000) (140,000) Interest (25,000) (15,000) Profit for the year 45,000 65,000 Less tax (13,500) (19,500) Profit for the year after tax 31,500 45,500