Analysis of Leverage Based on the financial statements of Cowan Kitchen Counters, Inc., as shown below: Cowan Kitchen Counters, Inc. Comparative Income Statement For Years Ended December 31, 20-2 and 20-1 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 $2,597,200 1,857,300 $739,900 318,500 24,200 179,100 $218,100 $2,161,700 1,618,700 $543,000 222,100 24,200 104,000 $192,700 Cowan Kitchen Counters, Inc. Comparative Balance Sheet December 31, 20-2 and 20-1 20-2 20-1 Cash Government notes Accounts receivable (net) $255,900 $245,000 250,400 250,400 904,600 795,500