Case Study For the current year ending, the Southern Gift Shop had gross sales of $1,520,000 with returns of $31,500. The inventory on January 1 was $460,000, and the cost of goods purchased during the year was $621,300. Freight costs during the year were $15,800. Total inventory on December 31 was $406,000. Salaries and wages totaled $84,600, rent was $26,100, advertising was $18,200, utilities were $41,300, taxes on inventory and payroll were $5,700, and miscellaneous expenses totaled $11,000. Income taxes were $63,840. . Instructions: 1. Complete the following Income Statement given the information above for the Southern Gift Shop, 2. Perform a Vertical Analysis on your completed income statement whereas Net Sales is the base, 100% Southern Gift Shop Income Statement Year Ending December 31 Percent Gross Sales Returns Net Sales Inventory, January 1 Cost of Goods Purchased Freight Total Cost of Goods Purchased Total of Goods Available for Sale Inventory, December 31 Cost of Goods Sold Gross Profit Expenses Salaries & Wages Rent Advertising Ublities Taxes on Inventory & Payroll Miscellaneous Expenses Total Expenses Net Income Before Taxes Income Taxes Net Income After Taxes