Clipboard ES X V Increase(Decrease) B C D E F G 4 A Music Lover, Inc. Comparative Statement of Financial Position W N December 31, 2019 and 2018 Increase(Decrease) 2019 2018 Amount Percent 7 Assets 8 Current Assets 9 Cash 70,392 68,250 10 Accounts receivable (net) 218,549 184,978 11 Inventory 223,242 197,097 12 Prepaid expenses 67-710 76.542 13 Total current assets 579,893 526,867 14 Noncurrent Assets 15 Plant, Property and Equipment (net) 90,503 110.987 16 Total Assets 670.396 637.854 17 18 Liabilities and Equity 19 Current Liabilities 20 Accounts payable 158,214 139,135 21 Bank loans and other payables 71,672 56,769 22 Current portion of notes payable 30,000 30,000 23 Total current liabilities 259,886 225,904 24 Long-term liabilities CSFP CIS +Music Lover, Inc. Comparative Statement of Financial Position December 31, 2019 and 2018 2019 2018 Assets Current Assets Cash 70,392 68,250 Accounts receivable (net) 218,549 184,978 Inventory 223,242 197,097 Prepaid expenses 67,710 76,542 Total current assets 579,893 526,867 Noncurrent Assets Plant, Property and Equipment (net) 90,503 110,987 Total Assets 670,396 637,854 Liabilities and Equity Current Liabilities Accounts payable 158,214 139,135 Bank loans and other payables 71,672 56,769 Current portion of notes payable 30,000 30,000 Total current liabilities 259,886 225,904 Long-term liabilities Notes payable (11%) 139,000 169,000 Total liabilities 398,886 394,904 Equity Preference shares, P8 dividend, P1oo par 70,000 70,000 Ordinary shares, P1 par value 10,000 10,000 Additional paid-in capital 90,000 90,000 Total paid-in capital 170,000 170,000 Retained earnings 101,510 72,950 Total equity 271,510 242,950 Total liabilities and equity 670,396 637,854A B C D E F Music Lover, Inc. Comparative Income Statement For the Years Ended December 31, 2019 and 2018 Increase( Decrease) 2019 2018 Amount Percent 7 Sales revenue 2,000,000 1,801,802 B Expenses 9 Cost of goods sold 1,472,000 1,309,910 10 Selling 248,000 230,000 11 Administrative 138,000 142,000 12 Total expenses 1,858,000 1,681,910 13 Operating income 142,000 119,892 14 Interest expense 27.907 29.270 15 Income before taxes 114,093 90,622 16 Income taxes (35%) 39933 31718 17 Net income 74.160 58,904 18 19 Dividends to preference shareholders 5,600 5.600 20 Net income remaining for ordinary shareholders 68,560 21 Dividends to ordinary shareholders 53-304 40,000 32,000 22 Net income added to retained earnings 28,560 23 Retained earnings, beg. of year 21,304 72.950 24 Retained earnings, end of year 51,646 101 510 72.950 CSFP CIS (+) Ready Type here to searchMusic Lover, Inc. Comparative Income Statement For the Years Ended December 31, 2019 and 2018 Sales revenue 2019 2018 Expenses 2,000,000 1,801,802 Cost of goods sold Selling 1,472,000 1,309,910 Administrative 248,000 230,000 w Total expenses 138,000 142,000 Operating income 1,858,000 1,681,910 Interest expense 142,000 119,892 Income before taxes 27,907 29 270 90,622 Income taxes (35%) 114,093 Net income 39933 31718 74,160 58,904 Dividends to preference shareholders 5.600 5.600 Net income remaining for ordinary shareholders 68,560 53.304 Dividends to ordinary shareholders 40.000 32,000 Net income added to retained earnings 28,560 21,304 Retained earnings, beg. of year 72,950 51,646 Retained earnings, end of year 101,510 72.950 Requirements: a. Prepare horizontal analysis based on the above statements presented (for percent: round of your answers to 2 decimal places) Music Lover, Inc.xles b. Evaluate the company's financial position and results of operation using the comparative statement analysis i. Short-term solvency analysis ii. Long-term financial position analysis iii. Operating efficiency and profitability analysis "You may surf the internet to guide you through but PLEASE REFRAIN FROM COPYING AND PASTING ANSWERS JUST TO COMPLETE YOUR REQUIREMENTS