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The owner of GROC Inc, has had a busy three years. The owner is curious about her company's performance as she compares its financial statements.

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The owner of GROC Inc, has had a busy three years. The owner is curious about her company's performance as she compares its financial statements. She is interested in bringing on an investor and wants to know if after your analysis you would recommend the company for investment. The GROC Inc. is privately held so there is no market share price alloble and they are in a new industry so there are no other companies to compare to balance Sheet 2020 Cash 2010 6,400$ 6,000 Accounts Receivable, Net 3,100 3.600 2,900 Inventory 1,600 4,100 2,480 Prepaid Expenses 970 1,490 640 Other Current Assets 520 570 640 Total Current Assets 15,130 16,160 12,660 Property and Equipment 86,000 101,000 35.100 Total Assets $ 101,130 $ 117,160 $ 48,460 Current Liabilities Long-term Liabilities $ 10,200 $ 4),800 10,200 $ 11,200 62,760 18,400 Total Liabilities 54,000 72,960 29,600 17,500 38,200 8,930 41,000 3,200 1,360 Contributed Capital Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders Equity 47,130 44,200 18,860 $ 101,130 $ 117,160 $ 48, 468 Incon Statement Sales Revenue Cost of Goods Sold $ 102,000 $ 78,000 $ 66,000 75,200 59,000 45.000 2.3, 800 19,000 20.000 6.200 4,200 9,200 Gross Profit Operating Expenses Gross Profit Operating Expenses 23,800 6,200 19,000 4,200 20,000 9,200 Income from Operations Interest Expense 12,640 2,100 14,800 5,300 10,89 1,900 Income Before Income Tax Experise Income Tax Expense 15,500 4,730 9,500 2,560 3,900 3,800 Net Income $ 10,770 6,940 $ 5,100 Required: 1-a. Complete a horizontal analysis and comment on any items (favourable or unfavourable) that may be of interest to the investor 1-b. Complete a full ratio analysis for 2020 (using the available information) and comment on each ratio as favourable or unfavourable. 2 Write a short paragraph telling my why (or why not) the invstor should invest in the company. Support your conclusions with the pertanent outcomes from 1 a and b

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