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Questions: Part 1 . Prepare a horizontal analysis for all 3 years using the income statement. Use % , not dollars. What significant changes do

Questions:
Part 1. Prepare a horizontal analysis for all 3 years using the income statement. Use %, not dollars.
What significant changes do you see in the income statement? Comments in 1-2 sentences.
Part 2. Prepare a horizontal analysis for all 3 years using the balance sheet. Use %, not dollars.
What significant changes do you see in the balance sheet? Comments in 2-3 sentences.
Part 3. Assess Patel's liquidity by using liquidity ratios. Is the company's position
improving or deteriorating? Explain your answer in 1-2 sentences.
*If calculating Days Sales Outstanding (DSO) assume all sales are on credit and there are 365 days in each year
Part 4. Assess Patel's profitability by using profitability ratios. For ratios that require average balances,
calculate them for 2021 & 2022 only. Assess's Patel's profitability using these ratios with a conclusion statement.
Part 5. How does the stock market view Patel's performance over these three years? Explain the
basis for your answer in 2 sentences.
Part 6. After you have completed the above analysis, identify what you consider to be the three most significant
weaknesses in Patel's performance. Answer in sentence format.
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