(a) Management has called you for a meeting to discuss financial statements. List four ways you can analyze the financial statements and explain the case where each is applicable. [4 marks]

(b)

Clover Corporation

Rec. 31 1999 and 1998

Assets	1999	1998
Current assets:	$ (000)	$ (000)
Cash	12,000	23,500
A/R net	60,000	40,000
Prepaid expenses	3,000	1,200
Total current assets	155,000	164,700
Non-current assets:
Land	40,000	40,000
Buildings	120,000	85,000
Total non-current assets	160,000	125,000
Total assets	315,000	289,700
Current liabilities & Equity:
Current: Accounts payable	67,000	44,000
Notes payable	3,000	6,000
Long term bonds payable	75,000	90,000
Equity: Total paid up capital	80,000	69,700
Retained earnings	315,000	315,000

1. Using horizontal analysis, determine the performance of Clover Corporation. [9 marks]

2. Using liquidity ratios, explain whether this company is on the right track. [2 marks]