The condensed statement of changes in financial position and detailed income statement information (in ’000s) for Tran Consulting Ltd. follow. Tran contracts professionals in the electronic data management field and provides services to clients around the globe.

Instructions

a. Using Excel, perform vertical analysis for all three years showing SFP amounts as a percentage of each year’s total assets and showing statement of income amounts as a percentage of service revenue of each year. Round to one decimal place.

b. Using Excel, perform horizontal analysis comparing 2023 with 2022 balances to highlight major areas of change. Round to one decimal place.

c. Comment on a minimum of five key financial relationships and trends you see based on the analysis you have performed for Tran’s consulting business.

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Assets Cash Accounts receivable Equipment (net) Goodwill 2023 $ 1,200 3,800 5,700 2,125 $12,825 2022 $ 790 2,850 4,800 1,385 $9,825 2021 $ 660 2,270 3,900 1,385 $8,215