The condensed statements of changes in financial position and detailed income statement information for Tran Consulting Ltd. follow. Tran contracts professionals in the electronic data management field and provides services to clients around the globe.

Instructions
(a) Using Excel, perform vertical analysis for all three years showing statement of financial position amounts as a percentage of each year's total assets and showing statement of income amounts as a percentage of service revenue of each year.
(b) Using Excel, perform horizontal analysis comparing 2017 with 2016 balances to highlight major areas of change.
(c) Comment on a minimum of five key financial relationships and trends you see based on the analysis you have performed for Tran's consulting business.

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2017 2016 2015 Accounts receivable Equipment (net) Goodwill $ 1,200 3,800 5,700 2,125 $12,825 2,850 4,800 1,385 $9,825 2,270 3,900 1,385 $8,215 Liabilities and Equity Accounts payable Long-term debt Share capital Retained earnings $1,850 7,100 1,300 2,575 $12,825 $1,350 6,200 1,000 1,275 $9,825 $1,080 5,400 1,000 735 $8,215 2017 2016 2015 $6,500 3,600 2,900 Service revenue Contract labour $10,900 5,990 4,910 930 630 $8,150 4,500 3,650 790 580 230 Administrative expenses Travel expenses Marketing expense Depreciation expense Other expenses Total expenses 180 2 3 1,930 1,730 1,300 2017 2,980 2,570 2016 1,920 1,620 $ 920 2015 6 Income from operations Interest expense Income before taxes Income taxes Net income 290 1,310 550 $1,470