MM Catering Group is now operating five fine dining restaurants in Hong Kong. The group planned to open a new restaurant in year 2023. You are the Financial Director of MM Catering Group that you will be awarded a special bonus if the net income growth could be maintained at 10% in each year, normally. In the middle of 2021, a competitor entered the market targeting similar customers and caused a considerable loss of customers that affected the business performance seriously. Based on the following financial statements (actual of 2021 and forecast of 2022), answer all the questions in this section. (Show your works clearly, and round the figures to one decimal place) MM Catering Group Statements of Comprehensive Income (in dollars) For the Year Ended 31 Dec 2021 actual 2022 projected Sales 1,350,000 1,075,000 Cost of goods sold 580,000 478,000 Gross profit 770,000 597,000 Operating Expenses Rent 82,000 86,000 Salaries and Wages 190,000 180,000 Miscellaneous 20,000 14,400 Insurance 16,000 14,000 Depreciation 6,000 6,000 Utilitites 42,000 356,000 48,000 348,400 Operating income 414,000 248,600 Interest expense 15,200 12,200 Income before income taxes Income taxes 398,800 236,400 79,760 47,280 Net income 319,040 189,120 MM Catering Group Statements of Financial Position (in dollars) As at 31 Dec Assets Cash Inventories Accounts receivable 2021 actual 2022 projected 120,000 78,000 140,000 160,000 220,000 180,000 Furniture and equipment 56,000 51,000 Total assets 536.000 469,000 Liabilities Accounts payable 130,000 110,000 Long-term bank loan 130,000 95,000 Total liabilities 260,000 205,000 Shareholders' Equity Common shares 30,000 30,000 Paid-in capital in excess of par 80,000 80,000 Retained earnings 166,000 154,000 Total shareholders' equity 276,000 264,000 Total liabilities and shareholders' equity 536,000 469,000 3. What is the main purpose for preparing the statement of financial position? Why is it important to shareholders? (4 marks) 4. Using horizontal analysis, calculate the percentage changes on the projected sales, rent, and net income of 2022 as compared to the actual of 2021. (6 marks) 5. Analyze and report the result of projected rent and projected net income in year 2022. (4 marks) 6. Based on the analysis result of projected net income, what is the impact on you as the Financial Director of MM Catering Group? (4 marks)