Questions:

Part $1.$ Prepare a horizontal analysis for all $3$ years using the income statement. Use $\%,$ not dollars.

What significant changes do you see in the income statement? Comments in $1-2$ sentences.

Part $2.$ Prepare a horizontal analysis for all $3$ years using the balance sheet. Use $\%,$ not dollars.

What significant changes do you see in the balance sheet? Comments in $2-3$ sentences.

Part $3.$ Assess Patel's liquidity by using liquidity ratios. Is the company's position

improving or deteriorating? Explain your answer in $1-2$ sentences.

$*$If calculating Days Sales Outstanding $($DSO$)$ assume all sales are on credit and there are $365$ days in each year

Part $4.$ Assess Patel's profitability by using profitability ratios. For ratios that require average balances,

calculate them for $2021$ & $2022$ only. Assess's Patel's profitability using these ratios with a conclusion statement.

Part $5.$ How does the stock market view Patel's performance over these three years? Explain the

basis for your answer in $2$ sentences.

Part $6.$ After you have completed the above analysis, identify what you consider to be the three most significant

weaknesses in Patel's performance. Answer in sentence format.