PERRY'S CARPENTRY

Use the financial statements above for the following requirements:

1. Conduct horizontal analysis (computation only)

2. Conduct vertical analysis (computation only)

3. Conduct ratio analysis (computation only) using DuPont analysis

4. Comment on the management's ability to manage the accounts receivable over the past two years.

5. What is a possible explanation for the decrease in the Wages and Salaries expense?

6. Explain the reasons for the increase in the bank loan.

7. Briefly explain and provide comments on the current ratio.

8. Highlight the bright spots in the company's financial health and identify at least three issues the business may encounter based on the financial information provided and the relationships between the ratios calculated and interpreted in the requirement.

9. Outline the potential limitations of your discussions in requirements 4-8 and provide recommendations for users of your analysis information.