Discuss the importance and meaning of horizontal analysis. Discuss both the positive and negative trends presented on the attached common-size income and balance sheet statements.

2019 2018 4.1% 2.4% 6.1% 6.4% At December 31, 2019 Assets Current asset Cash Accounts receivable, less estimated doubtful accounts Inventories of crude oil and products Materials, supplies and prepaid expenses Total current assets Investments and long-term receivables Property, plant and equipment, less accumulated depreciation and depletion Goodwill Other assets, including intangibles.net Total assets 3.1% 1.5% 15.0% 2.1% 3.1% 1.3% 12.9% 2.1% 81.1% 82.6% 0.4% 0.4% 1.4% 2.0% 100.0% 100.0% Liabilities Current liabilities Notes and loans payable Accounts payable and accrued liabilities Income taxes payable Total current liabilities Long-term debt Other long-term obligations Deferred income tax liabilities Total liabilities 0.5% 10.1% 0.3% 10.9% 11.8% 8.6% 11.2% 42.5% 0.5% 8.9% 0.2% 9.5% 12.0% 7.1% 12.3% 40.9% Shareholders equity Common shares at stated value Earnings reinvested Accumulated other comprehensive income (loss) Total shareholders' equity Total liabilities and sharelolders' equity HUAWEI Mate 20 Pro 3.3% 3.5% 58.8% 59.296 (5%) -(4%) 57.5% 59.1% 100.0% 100.0% 2019 2018 2017 99.7% 99.6% 99.0% 0.3% 0.4% 1.0% 100.0% 100.0% 100.0% For the years ended December 31, 2019 Revennes and other income Revenues Investment and other income Total revenues and other income Expenses Exploration Purchases of crude oil and products Production and manufacturing Selling and general Federal excise tax and fuel charge Depreciation and depletion Non-service pension and postretirement benefit Financing Total expense! Income (loss) before income taxes Income taxes Net income (loss) 0.1% 0.1% 0.6% 61.4% 61.4% 61.7% 19.1% 17.4% 19.0% 2.6% 2.6% 3.0% 5.3% 4.7% 5.7% 4.7% 4.4% 7.4% 0.4% 0.3% 0.4% 0.3% 0.3% 0.3% 94.0% 91.2% 98.0% 6.0% 8.8% 2.0% (0.5%) 2.2% 0.3% 6.5% 6.6% 1.7% (a) Amounts from related parties included in revenues. (note 17). 25.1% 18.296 14.0% 9.79 11.79 9.1% (b) Amounts to related parties included in purchases of crude oil and products, (note 17). C) Amounts to related parties included in production and manufacturing and selling and general expenses. (note 17). HUAWEI Mate 20 Pro O LEICA TRIPLE.CAMERALA in financing, (note 17). 1.89 1.6% 1.896 0.39 0.39 0.2%