Imagine that youre an executive leader (CEO, CFO, COO, etc.). The board of directors has tasked you with evaluating the organizations financial results over the past three years. The board specifically wants to know how the business has been trending and where they stand in terms of liquidity, credit risk, and profitability.

Briefly identify the type of business and industry that you are assuming for your analysis.

Explain how trend analysis of the income statement and balance sheet may help to support your conclusions that you present to the board.

Discuss how component analysis could be helpful in comparing the companys results against others in the industry.

Select three specific financial statement ratios that you would use to analyze the business. Explain why you selected the ratios and what they reveal about a companys performance or financial position.