Question 1: The following question is based on the data presented on Exercise E4.10 available on page 185 of your textbook.Prepare a comparative horizontal analysis of the change in each current asset account from Year 6 to Year 7. Express each change in dollars and the percentages each change represents. Discuss (comments on) each change that exceeds 10%. What, if anything, would you do as a manager of Hospitality Industry?Question 2: The following questions are based on the data presented on problem 4.2 available on page 186 of your textbook regarding the current assets and the current liabilities of the textbook. Data provided below Current Assets Year 0006 Year 0007 Cash 12,778 17, 765Credit card receivable 2,442 2,815account receivable 580 420marketable securities 12,000 16,000Inventories 6100 7100prepaid expenses 2400 2600total current assets 36,300 46700Current liabilitiesaccounts payable 10, 410 12,400accured expense payable 3760 6200Taxes payable 6800 8400Interest payable 500 800current mortgage payable 11,200 9900total current liabilities 32670 37700a. Working Capital: (Hint – CA â€“ CL)b. Current ratio: (Hint – CA / CL)c. Quick (acid test) ratio: (Hint – Quick assets/Current Liabilities)d. Credit card receivables as a percentage of credit card sales revenue: (Hint – Average credit card receivables/Credit card sales revenue)e. Credit card receivables turnover rate ratio: (Hint – Credit card sales revenue/Average credit card receivables) Question 3:(a) Use a common size vertical analysis to determine the composition of current assets and current liabilities for years 0006 and 0007 based on the data presented in problem 4.2 available on page 186 of your textbook. (10 points)Hint: Use the data provided on p 4.2 and complete a common-size vertical analysis of CA and CL(b) Interpret your findings (10 points)Hints: Interpretations of Current Assets and Interpretations of Current Liabilities Interpretations of Current Assets: It appears that Cash increased or decreased â€“write what you found as did marketable securities over the operating year from Years 0006 to 0007. The total of cash and marketable securities was ——% (% + %) in Year 0006 and (% + %) in Year 0007. It appears that the additional cash on hand at the end of Year 0007 of $______($ â€“ $) may be in excess of anticipated operating needs and the opportunity exists to increase (or decrease) the marketable securities by $____ in Year 0007. Interpret all your findings to receive full credit.Interpretations of Current Liabilities: In both absolute and percentage terms, all payables ————- (increased or decreased ?) slightly and only the current mortgage payable (increased or decreased?) over the year. Overall, the payables ______ (increased or decreased) by $ dollar amount ($ â€“ $) over the year. The increase in current payables in general is desirable if the increases result from effective cash management and generates a form of free money. However, if the increase results from becoming delinquent in paying the bills when due, it would not be a desirable trend and should be corrected.