You are a partner in a small business advisory firm that provides independent and objective guidance to medium-sized companies that are looking to improve their financial performance.

The president of one of your larger clients has asked you to be a participant at their upcoming strategic planning retreat, scheduled two weeks from now. They are looking for your advice as they wrestle with how to plan for their future growth.

A copy of their most recent three-year income statement is provided below. You know that you need to conduct some preliminary analysis to be fully prepared to for the retreat.

	Year 1	Year 2	Year 3
Revenue	10,000	15,000	20,000
Operating Costs
Labour	3,000	4,500	7,000
Materials	2,500	3,750	6,000
Total Operating Costs	5,500	8,250	13,000
Operating Margin	4,500	6,750	7,000
Overhead
Administration	2,500	3,000	3,500
Marketing	1,500	2,000	2,500
Total Overhead	4,000	5,000	6,000
Net Margin Before Tax	500	1,750	1,000

Your Assignment

1. Conduct routine financial and ratio analysis on the above three-year income statements.
2. Summarize your observations about the financial performance of this company.
3. Make a list of five (5) other pieces of financial or market data that you would find beneficial in assessing the financial performance of this company.