only answer the first question.

5. You would have completed chapters 5 and 6 of the textbook at the stage of the course and you will now be tasked with calculating and explaining the Horizontal and selected Ratio Analysis. VII. Horizontal Analysis: Please select two (2) Income Statement and two (2) Balance Sheet accounts from the most recent and prior year financial. In the accompanied Excel spreadsheet please calculate the $ and % changes, then in your own word explain the changes. Your answer should include a comparison of the current and prior years analysis. VIII. Ratio Analysis. In the accompanied Excel spreadsheet please calculate and interpret the selected ratio analysis. Your answer should include a comparison of the current and prior years analysis. 2018 May 31, 2018 May 31, 2017 $ 4,249 996 3,498 5,261 1,130 15,134 4,454 $3,808 2,371 3,677 5,055 1,150 16,061 3,989 283 139 2,787 23,259 285 154 2,509 22,536 6 Consolidated Balance Sheets - USD ($) $ in Millions Current assets: Cash and equivalents Short-term investments Accounts receivable, net Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Identifiable intangible assets, net Goodwill Deferred income taxes and other assets TOTAL ASSETS Current liabilities: Current portion of long-term debt Notes payable Accounts payable Accrued liabilities Income taxes payable Total current liabilities Long-term debt Deferred income taxes and other liabilities Commitments and contingencies (Note 15) Redeemable preferred stock Shareholders' equity: Capital in excess of stated value Accumulated other comprehensive loss Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY Class A Convertible Common Stock Shareholders' equity: Common stock at stated value Class B Common Stock Shareholders' equity: Common stock at stated value 336 2,279 3,269 150 6,040 3,468 3,216 325 2,048 3,011 84 5,474 3,471 1,907 0 0 6,384 (92) 3,517 9,812 22,536 5,710 (213) 6,907 12,407 23,259 2017 May 31, 2017 May 31, 2016 $ 3,808 2.371 3,677 5,055 1,150 16,061 3,989 283 139 2,787 23,259 $3,138 2.319 3,241 4,838 1,489 15,025 3,520 281 131 2,422 21,379 505 Consolidated Balance Sheets - USD (S) S in Millions Current assets: Cash and equivalents Short-term investments Accounts receivable, net Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Identifiable intangible assets, net 1 Goodwill Deferred income taxes and other assets TOTAL ASSETS Current liabilities: Current portion of long-term debt Notes payable Accounts payable Accrued liabilities Income taxes payable Total current liabilities Long-term debt Deferred income taxes and other liabilities Commitments and contingencies Redeemable preferred stock Shareholders' equity: Capital in excess of stated value Accumulated other comprehensive (loss) income Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY Class A Convertible Common Stock Shareholders' equity: Common stock at stated value Class B Common Stock Shareholders' equity: Common stock at stated value 6 44 3251 2,048 2,191 3,011 3,037 84 5,474 5,358 3,471 1,993 1,9071 ,770 0 0 8,638 (213) 3,979 12,407 23,259 7,786 318 4,151 12,258 21,379 1 Fiscal Year 2018 Income Statement Fiscal Year 2017 Change Change Explanation . Explanation | Fiscal Year 2018 Balance Sheet Fiscal Year 2017 Change Change Explanation Explanation 2017 12 Months Ended May 31, 2017 May 31, 2016 May 31, 2015 $ 4,240 $3,760 $3,273 Consolidated Statements of Comprehensive Income - USD ($) $ in Millions Statement of Comprehensive Income (Abstract] Net income Other comprehensive income (loss), net of tax: Change in net foreign currency translation adjustment Change in net gains (losses) on cash flow hedges Change in net gains (losses) on other Total other comprehensive income (loss), net of tax TOTAL COMPREHENSIVE INCOME (20) 16 (515) (32) (531) $ 3,709 (176) (757) 5 (928) $ 2,832 1,188 (7) 1,161 $ 4,434 2018 May 31, 2018 12 Months Ended May 31, 2017 May 31, 2016 $ 32,376 17,405 14,971 3.278 7,191 Consolidated Statements of Income - USD ($) $ in Millions Income Statement [Abstract) Revenues Cost of sales Gross profit Demand creation expense Operating overhead expense Total selling and administrative expense Interest expense (income), net Other expense (income), net Income before income taxes Income tax expense NET INCOME Earnings per common share: Basic (in dollars per share) Diluted (in dollars per share) Dividends declared per common share (in dollars per share) $36,397 20,441 15,956 3,577 7,934 11,511 54 66 4,325 2,392 $ 1,933 $ 34,350 19,038 15,312 3,341 7,222 10,563 59 (196) 4,886 646 $ 4,240 10,469 19 (140) 863 $ 3,760 $ 1.19 1.17 $ 0.78 $ 2.56 2.51 $0.70 $ 2.21 2.16 $ 0.62