1-answers for the A/P.

2-needs analysis & indication of the company; sales, gross profit, Net income, assets, liquidity.

alysis Practice Shane - Saved to this PC Table Tools ces Mailings Review View Help Design Layout O Search Shane's Problem In early 2019, Shane inherited a business from her/his Irish uncle. Shane learnt that her/his uncle had appointed new management at the beginning of 2017, and that since then income had declined. This made Shane wonder if the new management was any good. Use trend analysis to advise what s/he should do as the new owner. Income Statement ($ 000) Sales CGS Operating Expenses Net Income 2018 2,430 1,740 520 170 2017 1,930 1,220 370 340 2016 1,650 995 240 415 2015 1.250 740 190 320 Balance Sheet AR Inventory AP 1,170 4,200 2730 1,100 2,700 1.500 750 2,000 1.050 500 1,250 650 a: Compute the Index (round to nearest whole number) for each of the following accounts 2016 132 Income Statement Indices Sales CGS Operating Expenses Income 2018 194 235 274 53 2017 154 165 195 135 126 130 2015 100 100 100 100 106 Balance Sheet Indices A/R Inventory A/P 2018 234 336 2017 220 216 2016 150 160 2015 100 100 b: Analyze the trends shown by the indices and advise Shane as to what action, if any, she should take Analysis *