19:20 Thomas, the newly hired accountant of Regency Company, prepared the following: 1) a horizontal analysis for the most recent income statement, and 2) a vertical analysis for the most recent company's statement of financial position Both provided below: Regency Company Income Statement Horizontal Analysis 2019 2018 Revenues 150% 100% Cost of Sales 11396100% Gross Profit 170% 100% Operating expenses 105%100% EBIT 180% 100% Interest expenses 220%/100% EBT 146% 100% Tax 140% 100% Net Income 142% 100% Regency Company Statement of Financial Position Vertical Analysis 2019 2018 Assets 2019 2018 Assets Current Assets Cash and equivalents 2% 12% Accounts Receivable 20% 8% Inventory 15% 20% Property. Plant and Equipment, net 45% 30% Intangible assets 5% 5% Investments and other assets 13% 25% Total Assets 100% 100% Liabilities and Equity Current liabilities 9% 10% Non-current liabilities 46% 25% Share capital and Retained Earnings45% 65% Total Liabilities and Equity 100% 100% Required: 1) Using the income statement horizontal analysis, help Thomas understand the reasons for the change of income between 2018 and 2019. (3 marks) 2) Using the statement of financial position vertical analysis, help Thomas understand the key changes that occurred with regard to the composition of the balance sheet's assets, liabilities and equity and how that can have affected the change in income in 2019. (3 marks) Paragraph