1 (a) Income statement of ABC Company for the years 2020 and 2021 Particulars Sales revenue Less: Cost of goods sold Gross income Less: Operating expenses Salaries expenses Depreciation on building Depreciation on Truck Utilities expenses 2020 $ 2021 $ 1000000 1000000 -500000 -500000 500000 500000 -275000 -270000 -40000 -40000 -25000 -25000 -10000 -10000 Operating income 150000 155000 Less: Interest expenses -50000 -50000 Net income before tax 100000 105000 Less: Income tax -20000 -39000 Net income after tax 80000 66000 (c) Balance sheet of ABC Company for the years 2020 and 2021 Particulars Assets: Current assets: Amount $2020 Amount $2021 Cash Account receivables Inventories Prepaid rent 5000 35000 38000 16500 10000 7500 15000 15000 Office supplies 1000 500 Total current assets (a) 69000 74500 Non-current assets: Building net 275000 235000 Truck-net 200000 175000 Total non-current assets (b) 475000 410000 Total assets (a+b) 544000 484500 Question 2 (15 pts) Using Company ABC's Income Statement and Balance Sheet comparative data from Question 1. A. Prepare the following financial ratios: (5 pts) B. a. Current Ratio b. Quick Ratio c. Debt-to-total assets d. Average collection period e. Return on Equity C. D. Complete a vertical analysis of the comparative income statement; add two columns, label these columns appropriately, and convert the comparative income statement to percentages, showing vertical analysis (5 pts). E. Explain what the above analysis show: write a brief paragraph commenting on the changes shown in the financial ratios and vertical analysis from these two years. (250-500 words) (5 pts)