Common-size the following summarized income statement & balance sheet (10 marks). Has net income improved? If so, why? If not, why not? Has Owners Equity maintained its percent of total assets over the two years? Do a vertical analysis. Point out strengths & weaknesses (10 marks) ABC Company Ltd Income Statement For the period ending Dec. 31, 2021 2021 % 2020 % Sales 3,450,000 2,500,000 Cost of Sales 2,242,500 1,500,000 Gross Profit 1,207,500 1,000,000 Operating Expenses Advertising 250,000 200,000 Promotion 46,800 36,000 Sales Salaries 367,000 300,000 Admin. Salaries 150,000 120,000 Rent 120,000 120,000 Utilities 50,000 36,000 Net Income 223,770 188,000 ABC Company Ltd. Balance Sheet As of December 31, 2021 2021 % 2020 % ASSETS: Cash 550,000 945,000 Accounts Receivable 2,489,000 3,598,000 Inventory 742,500 1,400,000 Capital Assets 5,425,000 3,750,000 Total Assets 9,206,500 9,693,000 LIABILITIES Accounts Payable 2,895,000 3,800,000 OWNERS EQUITY 6,311,500 5,893,000 Total Liabilities & O/E 9,206,500 9,693,000