Analysis of liquidity The comparative income statement and balance sheet of Cowan Kitchen Counters, Inc. are shown. Cowan Kitchen Counters, Inc. Comparative Income Statement For Years Ended December 31, 20-2 and 20-1 Net sales (all on account) Cost of goods sold Gross profit Operating expenses Other expense (interest) < Income tax expense Net income Cash Government notes 20-2 20-1 $2,600,000 $2,170,000 1,880,000 1,630,000 $720,000 $540,000 310,000 210,000 24,200 24,200 172,000 104,000 $213,800 $201,800 Cowan Kitchen Counters, Inc. Comparative Balance Sheet December 31, 20-2 and 20-1 20-2 20-1 $455,800 $241,000 252,000 252,000