KF Income Statements: 2020-2019 2020 2019 Sales 6,572,800 7,811,500 Cost of goods sold 4.896.700 5.866,200 Gross margin 1.676,100 1.945,300 Administrative 1,281.700 1.492.200 Depreciation 72.000 86.000 Earnings before interest and taxes 322,400 367,100 Interest 37.900 31.600 Earnings before taxes 284,500 335,500 Taxes (at 40%) ) 113.800 134.200 Net income 170.700 201.300 KF Balance Sheets: 2020-2019 2020 2019 Assets Cash 244,000 300,000 915,000 Accounts receivable 1.106,600 Inventory 700.000 1.222.300 Other current 36,200 46.800 Current assets 1,951,200 2.619,700 Gross fixed assets 340,000 493,600 Accumulated depreciation (135,000) (233,800) Net fixed assets 205.000 259.800 Total assets 2.361.200 2.879.500 Liabilities and Net Worth Accounts payable 345,700 544,800 Notes payable 63,200 63,200 Accruals 164.300 156.100 Current liabilities 573,200 764,100 Long-term debt 316,000 252,800 Common stock (62,000 shares outstanding) 948.000 1,137,600 Retained earnings 524.000 725.000 Total liabilities and net worth 2.361.200 2.879.500 Required Using common size financial analysis and focusing on both the income statements and the balance sheets, evaluate the business and advice Owen and Tessa accordingly