Question: (Financial Statement Analysis) Your parents are interested in investing their money at one of the listed companies in Abu Dhabi Stock Exchange. They ask you, as an accounting expert, to select one company and analyze its financial statements for them. The complete annual report, including the notes to the financial statements, is available in the equities section of the Abu Dhabi Stock Exchange website.
Instructions: 1. Compute for 2016 and 2015 the financial ratios designed to measure a company's liquidity, profitability and solvency.
2. Prepare a schedule showing a horizontal analysis for year 2016 using 2015 as the base year.
3. Prepare a schedule showing a vertical analysis for 2016 and 2015
4. Based on the ratios calculated, discuss briefly the improvement or lack thereof in the financial position and operating results from 2016 to 2015.