Yoda Muba has finally decided to manage his investment portfolio himself and is considering the company Sativi to possibly invest in it. The company publishes its financial statements on its website, and Yoda decides to analyze certain elements before deciding whether to invest in it or not.

• You must demonstrate all the details of your calculations.

Work to do:

Using the balance sheet (appendix A) and the income statement (appendix B) for the years 2016 and 2017, establish the financial statements as a percentage of the company Sativi:

- Balance sheet as a percentage (%) of total assets and comment on it (maximum 50 words)

- Statement of earnings as a percentage (%) of sales and comment on it (maximum 50 words)

appendix A

Sativi balance sheet (in thousands of dollars) as of December 31
	2016	2017
Cash	18,460$	7,150$
Accounts	38,990$	42,024$
Inventory	54,109$	106,891$
Total current assets	111,559$	156,065$
Net fixed assets	105,284$	138,151$
Total assets	216,843$	294,216$
Accounts payable	34,948$	35,746$
Notes payable (bank)	31,993$	36,415$
Total current liabilities	66,941$	72,161$
Long-term debt	96,590$	165,700$
Total liabilities	163,531$	237,861$
Common shares	18,850$	18,850$
Retained earnings	34,462$	37,505$
Total shareholders' equity	53,312$	56,355$
Total liabilities and shareholders' equity	216,843$	294,216$

appendix B

Income statement (in thousands of dollars) as at December 31
	2016	2017
Sales	261 429$	313 715$
Cost of goods sold	235 671$	281 824$
Amortization	12 939$	16 312$
Earnings before interest and taxes	12 819$	15 579$
Interest paid	4 940$	6 240$
Profit before tax	7 879$	9 339$
Tax (30%)	2 364$	2 802$
Net profit	5 515$	6 537$