Database includes 2 years worth of actual data and one year of budget data for a retail business with 2 locations. In 2017, there was just one location, North. In January 2018, a new location, South, opened. Budget data is based on best estimates of business activity. Actual data included: Some maintenance costs that were expensed in Q4 Other Expenses North location were unexpected and not budgeted for. Sales Discounts can be impacted by competition (more competition, more discounts must be offered). In retail, industry averages include the following: Percentage of Total Sales COGS 33% Wages + Benefits 25% Rent + Utilities 10% Requirements: 1. Create an Income Statement by location and in total for both budget and actual data (row format) for both 2017 and 2018. 2. Use common size and specific ratios to analysize year over year results and to compare to budget data. 3. Create a 2019 Income Statement budget by location and in total including the following: 1. provide reasons for values 2. Budget for improved results and explain how the improvement will be achieved. In particular, the Net Profit for the South location must be improved. Use ratios, common size analysis and trend analysis to support your budget estimates and improvements.Act/Bud Month Year Location Utilities Freight Phone & Internet Packaging Bank and Moneris Marketing Other Exp Total Expenses Op Income Interest Exp Net Income Actual January 2017 North 3,307 3,311 778 1,986 2,919 3,756 5,839 59,646 4,560 4,147 413 Actual February 2017 North 4,603 4,219 756 2,461 5,567 3,446 5,567 65,452 10,730 4,026 6,704 Actual March 2017 North 4,909 3,843 716 1,774 4,174 3,318 3,339 57,452 (3,544) 3,881 (7,425) Actual April 2017 North 4,270 3,814 792 2,427 4,997 3,416 5,997 60,116 5,154 4,109 1,045 Actual May 2017 North 4,771 4,067 648 2,033 4,026 3,960 6,038 60,608 6,142 3,671 2,471 Actual June 2017 North 3,189 4,818 731 1,377 3,269 3,294 4,359 63,458 11,106 3,783 7,323 Actual July 2017 North 4,254 4,713 726 2,175 2,369 4,757 5,922 65,981 16,197 3,876 12,321 Actual August 2017 North 3,430 4,288 606 1,649 2,969 4,567 2,969 59,739 6,237 4,478 1,759 Actual September 2017 North 4,393 5,227 704 1,608 3,472 4,675 3,472 64,088 11,447 3,918 7,529 Actual October 2017 North 4,812 5,255 768 2,627 5,403 4,005 3,242 66,726 3,791 4,010 (219) Actual November 2017 North 4,728 3,367 728 1,813 2,513 3,273 3,350 54,581 3,271 4,054 (783) Actual December 2017 North 3,812 3,681 750 2,208 3,085 4,949 5,142 63,850 2,183 3,949 (1,766) Actual January 2018 North 4,962 3,864 678 2,459 2,025 3,145 5,063 61,861 4,266 3,866 400 Actual February 2018 North 3,609 3,744 676 1,604 3,278 3,289 3,278 52,973 2,232 3,931 (1,699) Actual March 2018 North 4,664 3,404 702 1,362 2,001 4,640 4,002 58,299 7,717 3,700 4,017 Actual April 2018 North 4,388 4,064 699 1,478 4,095 4,515 5,119 60,438 5,001 4,067 934 Actual May 2018 North 3,663 4,316 685 2,158 1,909 4,188 5,728 55,558 9,082 3,875 5,207 Actual June 2018 North 4,685 4,363 638 1,454 1,862 3,092 2,792 53,132 10,860 4,107 6,753 Actual July 2018 North 4,815 4,303 620 1,434 3,274 4,900 4,092 58,256 (5,097) 4,398 (9,495) Actual August 2018 North 3,027 3,725 788 1,330 3,296 3,834 3,296 51,987 3,804 4,158 (354) Actual September 2018 North 4,540 3,435 702 1,145 4,120 3,957 4,944 57,749 (3,971) 3,775 (7,746) Actual October 2018 North 3,835 2,879 665 1,439 4,558 3,508 5,469 54,935 7,432 3,729 3,703 Actual November 2018 North 4,841 4,374 740 1,562 1,746 3,060 2,619 53,294 2,766 4,182 (1,416) Actual December 2018 North 4,622 3,658 765 1,970 1,724 3,290 5,171 56,980 1,059 4,410 (3,351) Budget January 2018 North 4,427 2,727 598 1,705 4,863 3,218 2,918 56,107 7,060 4,615 2,445 Budget February 2018 North 5,146 2,943 533 1,635 5,116 3,244 4,093 60,681 8,943 4,262 4,681 Budget March 2018 North 5,274 4,340 572 1,085 2,363 3,100 3,544 62,759 19,215 3,231 15,984 Budget April 2018 North 4,301 3,745 587 1,873 6,055 3,117 6,055 66,029 17,612 3,041 14,571 Budget May 2018 North 5,302 4,064 577 1,876 3,714 3,014 2,785 56,286 5,294 3,314 1,980 Budget June 2018 North 5,028 3,846 587 1,923 1,985 3,198 4,963 57,642 9,561 3,762 5,799 Budget July 2018 North 4,887 3,557 521 2,134 5,335 3,615 5,335 62,706 8,431 4,786 3,645 Budget August 2018 North 5,261 3,581 538 1,791 3,656 3,830 2,742 56,842 4,708 4,900 (192) Budget September 2018 North 5,750 3,823 545 1,699 6,122 3,765 6,122 67,356 12,607 4,167 8,440\fBudget Actual Vs Budget Actual Actual Actual Actual Actual Budget Budget 2017 2018 2018 2018 2018 2018 2018 2018 2018 2018 Yr Over Yr North North South Total Common size North South Total Common size North South Total North % % 1%% % Sales Net Sales COGS Gross Margin Expenses (list below) Total Expenses Op Income Interest Expense Net Income