1 Preparation of Financial Statements analysis in Excel. (8 Marks) The comparative balance sheet of Mason Company appears below (attached as Excel on blackboard): MASON COMPANY Comparative Balance Sheet As of December 31, 2017 Assets Cash Short-terminvestments Accounts receivable (net) Inventory Property, plant, and equipment (net) Total assets Liabilities and stockholders' equity Accounts payable Short-term notes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity Income Statement Net sales Cost of goods sold Gross profit Expenses Depreciation expense Interest expense Selling expenses Administrative expenses Total expenses Income before income taxes Income tax expense Net income Instructions MASON COMPANY Income Statement For the Year Ended December 31, 2017 2017 $30,000 $45,000 2016 10,000 25,000 60,000 40,000 50,000 50,000 200,000 160,000 Sas0,000 $320,000 $10,000 $30,000 40,000 35,000 20,000 20,000 220,000 200,000 60,000 35,000 $350,000 $320,000 $200,000 75,000 125,000 $65,000 5,000 8,000 12,000 90,000 35,000 10,000 $25,000 (a) Using horizontal analysis with excel, show the percentage change for each balance sheet item using 2016 as a base year. (04 Marks) (b) Using vertical analysis with excel, prepare a common size comparative balance sheet and income statement for 2017. (04 Marks)