Patel's Fabrics Ltd. Comparative Income Statements 2018 $ 2018% 2019 $ 2019% 2020 $ 2020% 2021 $ 2021% Assignment #3: Financial Statement Analysis [20%] This assignment relates to the following Course Learning Requirements: CLR 1: Demonstrate the competencies required in the professional workplace. CLR 3: Complete authentic accounting related tasks similar to those one would experience in a typical business. CLR 4: Determine which government regulations apply to different businesses. Objective of this Assignment: In this assignment, students will demonstrate the financial statement analysis skills. Pre-Assignment Instructions: 1. To prepare you for this assignment, read the module 3 content, review all additional resources provided and complete the learning activity 3.1. 2. Download the attached Excel file titled Assignment Tasks: The tasks outlined below are to be completed based on the information provided in the attached excel file. Perform a Horizontal analysis for the year 2018 to year 2021 Income Statement and Balance sheet. Perform a Vertical analysis (common size statements) for the year 2018 to year 2021 Income Statement and Balance sheet. o Always consider the first year as the base year for the horizontal analysis. Provide your observations on the trends of the business, based on your horizontal and vertical analysis. Assess the business liquidity by using liquidity ratios. o Is the company's position improving or deteriorating? Explain your answer. Assess the business profitability by using profitability ratios. o Is the company's position improving or deteriorating? Explain your answer. Based on the above analysis (horizontal, vertical, and ratios), write a brief financial summary of the business, and explain any observed risks/weaknesses for the business. Sales 509,235 599,100 538,900 508,100 COGS 247,350 291,000 259,200 234,300 Gross margin 261,885 308,100 279,700 273,800 Operating expenses 90,270 106,200 104,600 104,100 Operating income 171,615 201,900 175,100 169,700 Inter