Part 2. Using Excel, prepare common-size (vertical) income statements and balance sheets for the Albany Furniture Company and Burlington Crafters, two firms that operate in the furniture manufacturing industry. Although both companies are in the same industry they have different business models and derive their revenue through different distribution channels Albany Furniture Company and Burlington Crafters' income statements and balance sheets can be found on the sheet labeled "Part 2 Common Size Analysis". When preparing a common-size analysis for the income statement, all line items should be expressed as a percentage of net sales (net revenues). When preparing the common-size analysis for the balance sheet, all line items should be expressed as a percentage of total assets. Use the percentage format and carry out decimals to the tenths place (one place to the right of the decimal) When you have completed the common-size income statements and balance sheets for both companies answer the following questions. 1. What is the absolute dollar amount and relative percentage of accounts receivable reported on cach company's balance sheets? 2. What is the ratio of total liabilities to total assets for each company? 3. How do the companies' capital structures compare? (Discuss how the companies finance their assets, for example relative percentages of debt vs. equity). 4. How do the companies' absolute dollar amount of gross profit and relative gross margin 5. Additional information has become available that one of the companies is a furniture manufacturer that distributes through wholesale channels while the other is a furniture manufacturer that distributes through retail channels. Typically, retailers compare to wholesalers in the furniture manufacturing industry in the following ways: . Retailers generate relatively higher gross profit margins than wholesalers .Retailers are required to invest relatively more in accounts receivable because of the extended payment terms they offer to consumers. Wholesalers usually carry ordinary trade accounts receivable. .Retailers desire to have stores in desirable locations which require a relatively greater investment in and property, plant and equipment than would be necessary for wholesalers. Given the foregoing information, which company distributes through retail channels and which distributes through wholesale channels? (Support your answer with evidence generated by your financial statement analysis of the two firms) Albaay Furniture C Crafters BALANCE SHEET Property, plant&equipment, net Investments in real estate 21,694 Current portion of long-term debt Current portion of capital leases 47,907 INCOME STATEMENT 1,108,038 8253 Selling, general&administrative expense 205.52 Non-operating (income) expense 4157