Analysis of Leverage Based on the financial statements of Cowan Kitchen Counters, Inc., as shown below: Comparative Income Statement 20-2 20-1 Net Sales (all on account) Cost of goods sold Gross profit Operating expenses Other expense (interest) Income tax expense Net income $2,581,000 1,852,600 $728,400 312,900 24,200 176,100 $215,200 $2,166,100 1,619,000 $547,100 223,300 24,200 107,800 $191,800 Cowan Kitchen Counters, Inc. Comparative Balance Sheet December 31, 20-2 and 20-1 20-2 $260,300 247,700 20-1 $246,200 247,700 Cash Government notes