6. Horizontal Analysis Complete the following comparative financial statements of Diamond Corp.: Diamond Corporation Comparative Income Statement 2018 and 2017 Increase (Decrease) Amount % Sales Less: Cost of sales Gross profit on sales Less: Operating expenses Selling expenses General and administrative expenses 2018 P 550,000 350,000 P 200,000 2017 P 400,000 250,000 P 150,000 P 60,000 P 56,000 50,000 P 110,000 P 90,000 30,000 P 86,000 P 64,000 Operating income Other income and expenses: Commission income Interest expense Net other income Income before income taxes Less: Provision for income taxes Net income 6,000 (4,000) P 2,000 P 92,000 23,000 P 69,000 8,000 (3,000) 5,000 69,000 17,000 52,000 P Comparative Balance Sheet As of December 31, 2018 and 2017 December 31 Increase (Decrease) 2018 2017 Assets Current assets: Cash Marketable securities Amount P 8,200 10,000 % P 8,000 6,000 30,000 70,000 1,800 P 120,000 60,000 120,000 P 300,000 35,000 38,000 3,000 P90,000 50,000 110,000 P250,000 Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Investment in FGL Co. Property and equipment, net Total assets Liabilities and Stockholder's Equity Current liabilities: Account payable Income taxes payable Accrued expenses Total current liabilities Long-term debt: Loans payable Total liabilities Stockholders' equity: Paid-in capital: Capital stock, par P100 Additional paid-in capital Total paid-in capital Retained earnings Total stockholder's equity Total liabilities and stockholders' Equity P51,600 25,000 3,400 P80,000 P 36,300 11,000 2,700 P50,000 70,000 P150,000 80,000 P130,000 P 90,000 20,000 P110,000 40,000 P 150,000 P 80,000 15,000 P 95,000 25,000 P 120,000 P300,000 P 250.000