2. Vendor Compensation will increase consistently with the sum increase of Material & Supplies Sales and Small Tools Sales. 3. Cost of sales for materials and supplies and small tools will increase proportionately based on their current percentage of sales, respectively. (HINT: You will need to use vertical analysis.)WALNUT GROVE TRIAL BALANCE For the Years Ended December 31, 2020 and December 31, 2021 2020 2021 Debit Credit Debit Credit Cash 173,000 Accounts Receivable 139,650 Inventory 40,000 Prepaid Expenses Building 275,000 Computers & Software 10,000 Furniture & Fixtures 25,000 Land 75,000 Machinery & Equipment Accumulated Depreciation 15,385 Accounts Payable 21,300 Payroll Tax Payable 260 Sales Tax Payable 6,983 Unearned Revenue Line of Credit 300,000 Notes Payable Peters, J., Capital 2,500 Peters, M., Capital 2,500 Retained Earnings 264,611 Custom Cabinet Sales Material & Supplies Sales 288,368 301,345 Small Tool Sales 35,631 36,700 Tool Rental Revenue 15,901 23,400 Vendor Compensation Revenue 642 COGS: Custom Cabinets COGS: Material & Supplies 92,278 COGS: Small Tools 21,735 COGS: Wages 33,721 Depreciation Expense 8,950 Insurance Expense 6,426 Office Supplies Expense 1,464 Payroll Tax Expense 6,069 Postage Expense 347 Small Tool Expense 6,162 Interest Expense 9,000 Income Tax Expense 30,278 954,079 954,079A B C D E Walnut Grove Projected Income Statement W N For the Year Ended December 31, 2021 Sales: Custom Cabinet Sales Material & Supplies Sales 301,345 LO Small Tool Sales 36,700 10 Tool Rental Revenue 23,400 11 Vendor Compensation Revenue 12 Total Sales 13 COGS: 14 COGS: Custom Cabinets 15 COGS: Material & Supplies 16 COGS: Small Tools 17 COGS: Wages 18 Total COGS: 19 Gross Profit: 20 Operating Expenses: 21 Depreciation Expense 22 Insurance Expense 23 Office Supplies Expense 24 Payroll Tax Expense 25 Postage Expense 26 Small Tool Expense Total Operating Expenses: 28 Operating Profit: 29 Interest Expense 30 Income Before Taxes: 31 Income Tax Expense