1. Use these statements to calculate trend percentages for all components of both statements using 2013 as the base year. 2. Prepare a memo to the CEO of Halloran company summarizing your findings about the financial health of the company, using your calculations from above as evidence to support your conclusions.

HALLORAN COMPANY Comparative Income Statements For Yea rs Ended December 31, 20172013 (S thousands) 2017 2016 2015 2014 2013 Sales S 1,271 S 1,122 S 1,028 S 948 S 890 Cost of goods sold S 935 S 774 S 677 S 602 S 564 Gross profit S 336 S 348 S 351 S 347 S 326 Operating expenses S 248 S 192 S 176 S 128 S 110 Net income S 89 S 156 S 176 S 219 S 216 HALLORAN COMPANY Comparative Balance Sheets December 31, 20172013 (S thousands) 2017 2016 2015 2014 2013 Assets Cash S 58 S 59 S 62 S 63 S 66 Accounts receivable, net S 368 S 386 S 350 S 270 S 239 Merchandise inventory S 1,379 S 1,023 S 903 S 774 S 702 Other current assets S 27 S 24 S 11 S 26 S 21 Long-term investments S - S - S - S 110 S 110 Plant assets, net S 1,515 S 1,511 S 1,314 S 708 S 734 Total assets S 3,346 S 3,002 S 2,639 S 1,950 S 1,871 Liabilities and Equity Current liabilities S 915 S 782 S 539 S 461 S 410 Long-term liabilities S 971 S 855 S 834 S 428 S 435 Common stock S 750 S 750 S 750 S 638 S 638 Other paid-in capital S 202 S 188 S 188 S 128 S 128 Retained earnings S 509 S 428 S 329 S 297 S 261 Total liabilities and equity S 3,346 S 3,002 S 2,639 S 1,950 S 1,871