Following are Flex Repair, Inc.'s balance sheets for the months ended May 31 and Apr 30, 2019, and the income statement for the month ended May 31, 2019. Click the icon to view the comparative balance sheet) Click the icon to view the income statement.) Read the requirements Requirement 1. Prepare a vertical analysis of the income statement using a multi-stop income statement. (Round percentages to one tenth of a percent, XX%) Flex Repair, Inc. Vertical Analysis of Income Statement For the Month Ended May 31, 2019 Percent of Total Net sales Amount S 54.000 9.180 Cost of goods sold Gross profit Service Revenue 4,530 Operating expenses Depreciation expenso Rant expense Insurance compense 2.592 2,376 1.296 % Choose from any list or enter any number in the input fields and then continue to the next % Operating expenses: Depreciation expense 2,592 % Rent expense 2,376 % 1.296 % 1,674 % Insurance expense Supplies expense Salaries expense Payroll taxes expense 19,170 % % 2,160 432 Bank service fees % % Total operating expenses Operating income Other expense: % Interest expense 820 % Net income 18,830 % Requirement 2. Calculate the current ratio for Flex Repair, Inc., at May 31, 2019. Requirement 2. Calculate the current ratio for Flex Repair, Inc., at May 31, 2019. Select the formula and then enter the amounts to calculate the current ratio for May. (Round the ratio to ho decimal places, XXX Abbreviations used: Avg = Average and ST = short-term.) I Current ratio May Requirement 3. Calculate the quick ratio for Flex Repair, Inc. at May 31, 2019 Select the formula and then enter the amounts to calculate the quick ratio for May. (Round the ratio to two decimal places, XXX. Enter a *o* for any accounts with a zero balance Abbreviations used: Aug = Average and ST = short-term) > = Quick ratio May ) Requirement 4. Why do you think the current and quick ratios are favorable? Do you believe that this is a temporary situation or a long-term situation? The favorable current and quick ratios are likely due to the This is likely a situation since Choose from any list or enter any number in the input fields and then continue to the next question Flex Repair, Inc. Comparative Balance Sheets May 31 and April 30, 2019 May 31 hed April 30 ent viations Assets Cash 5,540 71,400 8,487 $ 92,450 4,050 50 te the 160 125 hen ents tions use "O" for an 77,225 Accounts Receivable, net Inventory Supplies Total Current Assets Fixed Assets Less: Accumulated Depreciation Net Fixed Assets Total Assets Liabilities 105,037 345,700 (3,852) 341,848 262,000 (1,260) 260,740 do you thi term situation 446,885 $ 337,965 and quick hce 4 list or enter Print Done Accounts Payable $ 1,595 $ 450 Unearned Revenue 5,800 1,300 950 775 265 25 2,580 120 Salary Payable Interest Payable Payroll Taxes Payable Dividend Payable Current Portion of Long-Term Debt Total Current Liabilities Notes Payable 400 800 3,000 3,420 15,010 6,470 58,700 184,000 26,000 134,000 257,710 166,470 Mortgage Payable Total Liabilities Stockholders' Equity Preferred Stock Additional Paid-in Capital, Preferred Common Stock Additional Paid-in Capital, Common thi 15,000 ter 8,000 uck 15,000 8,000 64,000 3,000 hce 64,000 3,000 tar ferest Payable 205 25 2,580 120 400 800 Payroll Taxes Payable Dividend Payable Current Portion of Long-Term Debt Total Current Liabilities Notes Payable 3,420 3,000 15,010 58,700 184,000 6,470 26,000 134,000 Mortgage Payable 257,710 166,470 Total Liabilities Stockholders' Equity Preferred Stock Additional Paid-in Capital, Preferred Common Stock 15,000 15,000 8,000 8,000 64,000 64,000 Additional Paid-in Capital, Common 3,000 99,175 3,000 81,495 Retained Earnings Total Stockholders' Equity 189,175 171,495 Total Liabilities and Stockholders' Equity $ 446,885$ 337,965 Flex Repair, Inc. 8 Income Statement For the Month Ended May 31, 2019 ex Net Sales $ 54,000 Service Revenue places, 4,530 Expenses: Cost of Goods Sold 9,180 19,170 lex 2,592 sto a age 2,376 aces, X.X Salaries Expense Depreciation Expense Rent Expense Interest Expense Insurance Expense Supplies Expense Payroll Taxes Expense 820 1,296 Quick = 1,674 nt and 2,160 situation o 432 kely du Bank Service Fees situ Net Income $ 18,830 Income taxes ignored