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Question 2 (20 marks) Your friend Carmen was recently hired by Dowecheater & Howe Inc. He was asked to answer the following; a. Interest expense has increased significantly in 2020. In a brief sentence or two explain why this may have occurred. b. Depreciation expense has increased significantly in 2020. In a brief sentence or two explain why this may have occurred. c. Prepare a Statement of Comprehensive Income Statement for the Annual Report (both years) d. Prepare a Statement of Financial Position for the Annual Report (both years) e. Calculate Operating Cashflow for the year 2020 f. Explain what this company can do to improve Operating Cashflow Year 2019 Year 2020 Depreciation 1,794 3,875 Cost of Goods 4,297 5,084 Other Expenses 1,022 890 Interest 838 2,000 Gross Sales 16,038 17,194 Cash 6,552 6,983 Accounts Receivable 8,677 10,181 Sales Returns 891 1,067 Short Term Notes Payable 1,265 1,239 Long Term Debt 21,946 26,672 Sales Discounts 1,567 1,656 Net Fixed Assets 54,959 58,615 Accounts Payable 4,735 5,016 Inventory 15,426 16,511 Dividends 1,524 1,273 Common Stock 20,000 20,490 Accumulated Retained Earnings 37,669 38,873 Sales Allowances 1,081 500 Tax rate 40% 40%