(a) Wally has provided the information below - and asked you to create an Income Statement for Timce for 2019 and Balance Sheet for TimcCo as at December 31 , 2019. (Income Statement =5 marks and Balance Sheet =7.5 marks). I. Sales were $1,000,000 II. Gross profit margin was 60% III. Operating margins were 12% IV. The Bank of Toronto provided a loan on Jan 1,2019 worth $300,000. The annual interest is 8% and is compounded annually. Interest only payments are needed until the loan is due in 10 years, where a balloon payment for the full balance must be paid. V. The combined federal and provincial tax rates is 27% VI. Wally knows that the ending cash balance in his company is 200,000 . VII. Accounts Receivables is 10% of sales VIII. Inventory is 15% of sales IX. Accounts Payable is 5% of sales X. Accrued expenses payable is 5.5% of sales XI. Capital equipment purchases were made at the start of the year. These total $50,000. These depreciate at 10% per year XII. The owner will provide all other capital in the form of equity financing XIII. Wally has asked you to figure out his SG\&A (Selling General and Administrative expenses). (b) Wally asks you to create an Income Statement for 2020 using the information below ( 5 marks) I. 2020 sales were 125% of 2019 sales II. Gross profit margin was 55% III. Operating profit margins were 15% IV. Interest expense fell to 7%, given a change in interest rates V. The tax rate was 30%