City Computers reported the information shown as follows: (Click the icon to view the income statement.) (Click the icon to view the balance sheet.) Required 1. Is City Computers a merchandising entity, a service business, or both? How can you tell? List the items in City Computers' financial statements that influence y answer. 2. Compute City Computers' gross margin for fiscal years 2023 and 2022. Did the gross margin increase or decrease in 2023? Is this a good sign or a bad sign a the company? 3. Write a brief memo to the owner advising her of City Computers' trend of sales, gross margin, and net income. Indicate whether the outlook for City Computer favourable or unfavourable, based on these trends. Requirement 1. Is City Computers a merchandising entity, a service business, or both? How can you tell? List the items in City Computers financial statement influence your answer. City Computers is