PART1 TASK 1) (40 pts) ABC company's Income Statements for 2017-2021 are given below: 2019 Sales Revenue COGS (-) Gross Profit Operating Expenses (-) General Admin Expenses (-) 2020 2018 2017 2016 $144,000 $96,000 $90,000 $60,000 $42,000 79,200 48,000 36,000 33,000 29,400 64,800 48,000 54,000 27,000 12,600 33.120 18,240 20,700 18.000 8.820 21,600 12,480 13,500 10,800 6,300 Marketing and Sales Expenses (-) 11,520 5,760 7,200 7,200 2520 Operating Profit 31,680 29,760 33,300 9,000 3780 Interest Expense (-) 4,800 4,200 6,000 6,000 6,000 Gain on Sale of an unused building 9,600 0 3600 0 4,800 Profit Before Tax 36,480 25,560 30,900 3000 2580 Tax Expense (-) 2918.4 2044.8 2472 240 206.4 Net Profit 33.562 23,515 28.428 2760 2373.6 a) Show the index-trend percentages for each item for five years, taking 2017 as the base year. (Show supportive calculations) (15 pts) b) Indicate whether the trend for COGS and Marketing and Sales Expenses are Favorable or Unfavorable? (5 pts) c) Write your conclusion on whether the overall trend in Net Profit is Favorable or Unfavorable, explaining the reasons (Provide at least three reasons). (5 pts, min 80 w.) d) If there were 5% inflation in 2018, 3% inflation in 2019, 2% inflation in 2020, and 4% inflation in 2021, would you change your conclusion for (c)? (Support your answer by numbers and calculations) (15 pts, min 100 w.)