Required:

$3\mathrm{.}1$ Discuss the purpose of financial statement analysis.

$3\mathrm{.}2$ Calculate the following ratios for each of the three years:

$3\mathrm{.}2\mathrm{.}1$ Accounts receivable collection period

$3\mathrm{.}2\mathrm{.}2$ Inventory holding period

$3\mathrm{.}2\mathrm{.}3$ Accounts payable payment period

$3\mathrm{.}2\mathrm{.}4$ Current ratio

$3\mathrm{.}2\mathrm{.}5$ Acid test ratio

$3\mathrm{.}3$ Analyse the company's working capital management in light of the analysis

undertaken in $3\mathrm{.}2$ above.