Perform a horizontal analysis of the comparative balance sheets. Comment on the analysis.

The (decrease/increase) in merchandise inventory would cause concern. The (decrease/expected increase/large increase)

in accounts receivable is an item of concern. But this item cannot be analyzed in isolation. The changing composition of the liabilities and shareholders' equity, with the (increase/reduction) in the liabilities being offset by an (decrease/increase) in common shares, would (increase/reduce)the risk of creditors, but may have caused a reduction in control.

Part

Taty Burgers inc 'y thancial staloments far the yeac ended December 31, 2020, are shown belon. Balance Sheet (Clith the icon to view the inceme stusement) B iclick the icen to virw the stetemint of retained t. (Cick the icon to view the balance shewt) Requinement 1. Perlorm a horizontal arayss of the comporatvin belance thets. Comnent on the avalys. (E mines sign or parentheses. ow letr analy te our fingings trom the horleontal analyais. in meichand se inventory would cauite concem. The in acoounts nopivable is an tow of concem. Bid this bem carnch be andyped in isolatson. The changing composion of the iabilites and: areholders' eciuty, with the in the Labloes being obled by an in common shares. would the risk of cieshon. but may have taused a seduction in eontrol