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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,

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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 (s 000) 2018 2017 2016 2015 Sales 2.430 1,930 1.650 1.250 CGS 1,740 1.220 995 740 Operating Expenses 520 370 240 190 Net Income 170 340 415 320 Balance Sheet AR 1.170 1.100 750 500 Inventory 4,200 2,700 2,000 1.250 AP 2.730 1.500 1.050 650 a: Compute the Index (round to nearest whole number) for each of the following accounts Income Statement Indies 2018 2017 2016 DOIS Sales CGS Operating Expenses Income Balance Sheet Indices 2018 2017 2016 2015 AR Inventory AP b: Analyze the trends shown by the indices and advise Shane as to what action, if any, s/he should take Analysis

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