Please explain what the correct answer is for both of the above questions.

Question 9 0/1 point From Book: Common-Sized Financial Statements (LO 9.7) Eikner, Inc. operates two small clothing stores in southeastern Idaho. Following are this company's income statements for the years ended December 31, 2006 through 2008, and year-end balance sheets for 2006 through 2008 Income Statements For the Years Ended December 31, 2006-2008 2007 S641,900 $652,000 $654,500 (304 500) (323700 339 200) $337.400 $328,300 $315,300 (154,200) (155,800) (161900) S183.200 $172,500 $153.400 13400 (6,400)(1,200) S196,600 $166,100 152,200 (78,600) (66400)(60,900) Cost of goods Sold Gross Profit Operating Income Other Revenue (Expense Income before Income Tax Income Tax Expense S 91300 All of the company's Includes interest expense of the following amounts: $8,900 (2000); $7,400 (2001), and $7,100 (2002). sales are on a credit basis. Balance Sheets December 31, 2006-2008 ASSETS $ 22.000 $9,100 Accounts Receivable (net) Inventory Prepaid Expenses 72.500 109,800 2,500 103.300 102,000 1 $ 3,700 116,900 89,000 $206,800 $215,800 211,300 201,500 Total Current Assets Property & Equipment (net) Other Assets Total Assets 189,400 LIABILITIES Accounts Payable Notes Payable Accrued Liabilities 51900 57,200 64,900 12,000 25,000 15,000 Total Current Liabilities Bonds Payable $118,000 $108,000 S 84.300 100,000 80,00080,000 $218,000 $188,000 $164 300 Total Liabilities STOCKHOLDERS' EQUITY Common Stock Additional Paid-in Capital Retained Earnings 50.000 0,000 0,000 130,000 24,000 51,900 57,900 204000 231900 237 900 $41990$402 200 130,000 130,000 Total Stockholders' Equity Total Liabilities and Stockholders Equity $422