Instructions: 1. Using Microsoft Excel formulas, calculate a horizontal and vertical analysis for the first three months ofQB Cloud's operations for the profit and loss.QB CloudProfit and LossHorizontal & Vertical AnalysisOctoberNovemberDecemberOctober - DecemberQuarterly Vertical AnalysisHorizontal AnalysisIncome401 Sales6,000.0011,920.0013,220.0031,140.00Total Income$6,000.00$11,920.00$13,220.00$31,140.00Cost of Goods Sold501 Cost of Goods Sold0.005,960.006,610.0012,570.00Total Cost of Goods Sold$0.00$5,960.00$6,610.00$12,570.00Gross Profit$6,000.00$5,960.00$6,610.00$18,570.00Expenses601 Advertising125.00250.00330.00705.00603 Bank Charges20.0020.0020.0060.00605 Dues & Subscriptions150.000.00125.00275.00607 Depreciation Expense0.000.00800.00800.00609 Freight & Delivery64.6589.1552.65206.45611 Insurance0.000.00750.00750.00619 Meals and Entertainment126.4046.40109.71282.51621 Office Supplies226.85111.82200.11538.78623 Rent or Lease0.000.006,000.006,000.00625 Repair & Maintenance140.000.00150.00290.00627 Shipping and delivery expense47.000.0047.0094.00629 Stationery & Printing425.22127.96115.82669.00633 Telephone Expense158.32158.32240.45557.09635 Utilities79.0084.3285.33248.65Total Expenses$1,562.44$887.97$9,026.07$11,476.48Net Operating Income$4,437.56$5,072.03-$2,416.07$7,093.52Net Income$4,437.56$5,072.03-$2,416.07$7,093.52Address the following questions. Be mindful of writing in complete sentences and using proper spelling and grammar.