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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 available and they are in a new industry so there are no other companies to compare to Balance Sheet 2018 $ 8,900 $ 6,4005 6,000 Accounts Receivable, Net 3,109 3,600 2,90 Inventory 1.640 4,100 2,480 Prepaid Expenses 1,490 Other Current Assets 520 570 Cash 978 640 Total Current Assets Property and Equipment 15,130 36, 16,160 101,900 12,660 35,800 Total Assets 5 101,100 117,160 $ 48,460 Current Liabilities Long-term Liabilities $ 10,200 $ 10,200 $ 11,200 43,800 62,760 18,400 Total Liabilities 54,000 72,960 29.600 38,200 8,930 41,000 3,200 17,500 1,360 Contributed Capital Retained Earnings Total Shareholders' Equity 47,130 44,200 18,860 Total Liabilities and Shareholders' Equity $ 101,130 S 117,160 $ 48,460 Total Liabilities and shareholdes" quity Income Statement Sales Revenue cost of Gonds Sold $ 102,000 $70,000 $ 66,00 7,200 Gross Profit Operating Expenses Income from Operations Interest Expense 23.00 6,20 19.000 4.200 70. 9,200 17.000 2.100 10,000 14.80 5,00 Income Before Income Tax Expense Income Tax Expense 15.500 4,730 9.500 2,560 1,900 3,800 Net Income 10,770 5 6,940 55,100 Required: 1-o. 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 informal on) 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 1o and b

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