1. Perform a horizontal analysis for net sales revenue vs. net trade receivables and comment.

2. Conduct vertical analysis for cash and cash equivalents and costs of goods sold accounts for 2019 and comment. (Sector averages are 0.17 and 0.63, respectively)

2019 2018 10,000 21,000 23,000 3,000 57,000 8,000 14,000 16,000 2,000 40,000 92,280 73,800 92,280 73,800 149,280 113,800 ASSETS Current Assets Cash and cash equivalents Trade receivables (net) Inventories Prepaid expenses and accrued revenues Total current assets Non-current (fixed) Assets Tangible assets (net) Total non-current (fixed) assets TOTAL ASSETS LIABILITIES Short-term Liabilities Bank loans (ST) Trade payables Taxes and other duties payable Provision for corporate tax Total short-term liabilities Long-term Liabilities Bank loans (LT) Total long-term liabilities Total liabilities Shareholder's Equity TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 7,000 16,000 1,700 580 9,000 12,000 2,200 1,600 24,800 25,280 45,000 35,000 45,000 35,000 70,280 59,800 79,000 54,000 149,280 113,800 2018 61,200 -1,200 60,000 INCOME STATEMENT Sales revenue Sale returns Net sales revenue Cost of goods sold Gross Margin Marketing, selling, and delivery expenses General administrative expenses Operating income Other gains and losses Financing expenses Period income Corporate tax Net period income 2019 80,000 -2,000 78,000 -60,000 18,000 -5,600 -5,000 7,400 -1,500 3,000 2,900 -580 2,320 40,000 20,000 -4,850 -4,150 11,000 -1,000 -2,000 8,000 -1,600 6,400