- Comment on the differences between case study ratios and the industry averages.
- Conduct a vertical analysis of income statements, balance sheets, and cash flow statements.
- Determine the trends evident in the financial statements
Attached is your answer
DARLARNA FURNITURE LTD.
When Fredrik Blix got Darlarna Furniture's 2008 financial statements back from the accountant in mid-
January 2009, he became quite concerned about the dramatic drop in profits, as he knew the venture
capitalists were looking to sell their investment soon. He was also alarmed by reports in the media that a
number of investment firms in the United States had failed and required government bailouts to continue
operating. Could a severe recession be soon to follow? How would this influence demand for his
products? Would the Bank of Montreal still be prepared to provide needed financing?