Questions:
Part Prepare a horizontal analysis for all years using the income statement. Use not dollars.
What significant changes do you see in the income statement? Comments in sentences.
Part Prepare a horizontal analysis for all years using the balance sheet. Use not dollars.
What significant changes do you see in the balance sheet? Comments in sentences.
Part Assess Patel's liquidity by using liquidity ratios. Is the company's position
improving or deteriorating? Explain your answer in sentences.
If calculating Days Sales Outstanding DSO assume all sales are on credit and there are days in each year
Part Assess Patel's profitability by using profitability ratios. For ratios that require average balances,
calculate them for & only. Assess's Patel's profitability using these ratios with a conclusion statement.
Part How does the stock market view Patel's performance over these three years? Explain the
basis for your answer in sentences.
Part 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.
