PART 1: horizontal and vertical analysis (15 POINTS) 1) Perform an horizontal or gap analysis of the given Balance sheets below, and comment in maximum 5 lines (7.5 points) Better Buy Inc. Balance sheet as at december 2020 and forecast for 2021 (Not audited - See notice to readers) 2020 year-end 2021 Forecast (in thousand $) Differences in $ Differences in % Assets Short term assets Cash $ 47,161 $ 75.820 accounts receivable 5,000 11,436 Inventory 16.354 -11,435 68,515 75,821 long term assets 10,040 10,040 Fixed assets - equipment Cummulated depreciation - Equipment 4,447 4,894 Fixed assets - Net 5,5 5,146 Total assets 74,108 80,967 Liabilities Short term liabilities Accounts payable Short term loans 10.069 13,247 6,320 6,320 Long term liabilities Long term loans 54,835 54,835 Total liabilities 71,224 74,402 Equity Common shares 4 4 Retained earnings 2.880 6.561 Total Equity 2,884 6.565 Liabilities plus equity 74,108 S 80,967 Comments and suggestions: 2) Perform a vertical or common-sze analysis of the given balance sheets below, and comment in maximum 5 Ines (7.5 points) Better Buy Inc. Balance sheet as at december 2020 and forecast for 2021 (Not audited - see notice to readers) 2020 year-end Common-size percent (%) (in thousand $) 2021 Forecast Assets Short term assets Cash accounts receivable Inventory $ 47,161 $ 75,820 5.000 11,436 16,354 -11,435 68,515 75,821 long term assets 10,040 10,040 Fixed assets - equipment Cummulated depreciation - Equipment Fixed assets - Net 4,447 4,894 5,593 5,146 Total assets 74,108 80,967 Liabilities Short term liabilities 10,069 Accounts payable Short term loans 13,247 6,320 6,320 Long term liabilities Long term loans 54,835 54,835 Total liabilities 71.224 74,402 Equity 4 Common shares Retained earnings 4 2,880 6,561 Total Equity 2.884 6,565 Liabilities plus equity $ 74,108 A 80,967 Comments and suggestions