Comparative Financial Statements Analysis

Data:

• 2023:
  • Revenue: $500,000
  • Expenses:
    • Operating Expenses: $300,000
    • Interest Expense: $50,000
• Assets:
  • Cash: $70,000
  • Receivables: $80,000
  • Property: $200,000

• Liabilities:
  • Payables: $60,000
  • Long-term Debt: $100,000

• 2022:
  • Revenue: $450,000
  • Expenses:
    • Operating Expenses: $280,000
    • Interest Expense: $40,000
• Assets:
  • Cash: $60,000
  • Receivables: $70,000
  • Property: $180,000

• Liabilities:
  • Payables: $55,000
  • Long-term Debt: $90,000

Requirements:

1. Prepare the comparative income statement and balance sheet for 2022 and 2023.
2. Analyze the changes in financial performance and position.
3. Discuss the implications of these changes for the company's strategy.