Students should note that in the content of the question, students should replace the digits XXX as the last $3$ numbers of the student code to calculate. $(501)$

Question $1$: John Smith, an University graduate with $4$ years of experience as a corporate risk analyst, was recently hired as assistant to the chairman of the board of directors of GM Group, a supplier corporation, Real estate services, apartments for rent in the area. In $2018,$ GM doubled its operating capacity, opened more sales branches outside its local area and launched an expensive advertising campaign. John Smith takes on the job of evaluating the impact of changes in a company's operations on its finances and identifying future risks. He begins by gathering financial statements and other data such as the following table:

Suppose that you are John Smith, an assistant to the chairman of the board of directors, and you must help him answer the following question:

$1.$What effect does such business expansion have on revenue and net profit? Does the expansion have an impact on the assets, liabilities and equity sections of the balance sheet?

$2$ What risks do you conclude from the financial statements? Identify $3$ risks and construct in the format: Cause, risk, potential impact. If the company is not performing well, how should you improve? You can use financial ratio analysis to answer this question.