A PP Catering Group is now operating five fine dining restaurants in Hong Kong. The group planned to open a new restaurant in year 2023. You are the Financial Director of PP Catering Group that you will be awarded a special bonus if the net income growth could be maintained at 15% in each year, normally. In the middle of 2021, a competitor entered the market targeting similar customers and caused a considerable loss of customers that affected the business performance seriously. Based on the following financial statements (actual of 2021 and forecast of 2022), answer all the questions in this section. (Show your works clearly, and round the figures to one decimal place PP Catering Group Statements of Comprehensive Income indo For the Year Ended 31 Dec 2021 actal 2022 projected Sales 1,400,000 950,000 Cost of goods sold 675.000 488,000 Gross prof 725,000 462.000 Operating Expenses Salaries and Wages 180,000 170,000 Depreciation 5,000 5,000 Re 92,000 96,000 Insurance 18.000 15,000 Miscellaneous 20.000 14,400 Unite 44,000 359.000 46,000 346,400 Operating income 366,000 115,600 Interest expense 13.200 10,800 Income before income taxes 352,300 104.800 Income taxes 55,600 17.600 Net income 297,200 87,200 PP Catering Group Statements of Financial Position (in dollars) As at 31 Dec 2021achel 2022 projected Assets Cash 130,000 76,000 Accounts receivable 240,000 210,000 Inventories 360,000 180,000 Funiture and equipment 65.000 55,000 Totalt $21.000 Liabilities Accounts payable 120,000 100,000 Long-tembak kan 110.000 $5,000 Totalit 230.000 185.000 Shareholders' Equity Common shares ($1 par) 45,000 45,000 Paid-in capital in excess of par 100,000 100,000 Retained caring 220.000 191.000 Total shareholders' equity 365.000 316,000 Total lubilities and shareholder equity $95.000 $21.000 HST4015 1. What is the main purpose for preparing the statement of financial position? Why is it important to shareholders? (4 marks) 2. Using horizontal analysis, calculate the percentage changes on the projected sales, rent, and net income of 2022 as compared to the actual of 2021. (6 marks) 3. Analyze and report the result of projected test and projected net income in year 2022. (4 marks) 4. Based on the analysis result of projected net income, what is the impact on you as the Financial Director of PP Catering Group? (4 marks)