Introduction You decide to go into business with a former classmate that currently has a full service restaurant and bar in the Hudson Valley. Your new partner says that the business has been successful for each of the two years that it has been open. Your former classmate would like to open a second location across the river, with you as an equal business partner. Based on the information that you have been provided below, prepare and discuss (where indicated) the following in preparation for this new business venture. I. Using the 2019 and 2020 Income Statements, prepare both a Comparative Horizontal and Common Size Vertical Analysis. Using a subset of the 2019 and 2020 Balance Sheets, prepare a Comparative Horizontal Analysis. Write a brief essay describing your understanding of the current business using these statements. Comment on any significant variances. Additionally, explain what you believe to be the strengths and weaknesses of the business based on this information. Use the worksheets in the back of this packet to complete the analysis and the space provided for your essay. Income Statement for Existing Restaurant YE 2019 YE 2020 Sales Revenue Food Revenue $995,000 $1,115,000 Beverage Revenue $302,500 $351,600 Total Sales Revenue $1,297,500 $1,466,600 Cost of Sales Food COS $352,500 $345,200 Beverage COS $95,000 $127,000 Total Cost of Sales $447,500 $472,200 Labor Expense $382,560 $564,310 Prime Cost $830,060 $1,036,510 Controllable Expenses Operating Supplies Expense $20,100 $25,300 Administrative and General Expense $10,200 $11,405 Advertising and Promotion Expense $4,200 $4,600 Repairs and Maintenance $2,900 $1,650 Utilities $14,100 $12,545 Total Controllable Expenses $51,500 $55,500 Controllable Income $415,940 $374,590 Non-Controllable Expenses Depreciation $10,000 $10,000 Occupancy Costs $152,000 $152,000 Interest Expense $5,800 $5,200 Total Non-Controllable Expenses 168.800 167,200 Operating Income $248,140 $207,390Subset of Balance Sheet YE 2019 YE 2020 Current Assets Cash $48,200 $31.600 Credit Card Receivables $2,740 $3,100 Accounts Receivable $890 $1,475 Marketable Securities $1.200 $18,000 Prepaid Expenses $3,900 $5.400 Food Inventory $6,900 $4,700 Beverage Inventory $3,620 $2,960 Total Current Assets $67.450 $67,235 Current Liabilities Accounts Payable $10.900 $9.400 Accrued Expenses Payable $3,250 $2,100 Taxes Payable $22,200 $24,300 Current Mortgage Payable $13,200 $11,600 Total Current Liabilities $49.550 $47.400