1. Why is there a need for us to analyze the data reported in the financial statement? Give at least three (3) reasons.

Experience Horizontal Analysis The Asset Section of the comparative Statement of Financial Position of Baguio Corporation follow: ASSETS 2020 2021 % Cash P 148,000 P 100,000 (1) Accounts Receivable 283,000 410,000 (2) Inventory 322,000 616,000 (3) Other Current Assets 10,000 14,000 (4) Total Current Assets P 763,000 P 1,140,000 (5) Property Plant, and 460,000 904,000 (6) Equipment TOTAL ASSETS P 1,223,000 P 2,044,000 (7) Required: Using 2020 as the base year, perform trend analysis