Question 2 (12 marks) Family Supermarkets Ltd. reports the following set of financial statements for 2021 (income statement and the balance sheet on the next page) Required - Prepare a vertical analysis for the income statement and balance Family Supermarkets Ltd. Income Statement For the Year Ended December 31, 2021 2019 Sales Revenue 585,000 2$ Cost of goods sold Gross Margin 366,000 $4 219,000 Operating Expenses Selling and general expenses Interest expense Total expenses 170,000 11,200 181,200 24 Net Income 37,800 %24 For the Year Ended December 31, 2021 2019 Sales Revenue 585,000 Cost of goods sold Gross Margin 366,000 $ 219,000 Operating Expenses Selling and general expenses $4 170,000 Interest expense 11,200 Total expenses $4 181,200 Net Income $ 37,800 Family Supermarkets Ltd. Balance Sheet December 31, 2021 Assets 2019 % Cash $ 80,000 Accounts Receivable 22,000 Inventory $ 63,000 Prepaid Expenses 2$ 2$ 10,000 175,000 Total Current Assets Property, plant and equipment, net 140,000 315,000 Total Assets Liabilities %24 %24 Family Supermarkets Ltd. Balance Sheet December 31, 2021 Assets 2019 Cash 80,000 Accounts Receivable 22,000 Inventory $ 63,000 Prepaid Expenses 10,000 175,000 Total Current Assets Property, plant and equipment, $4 net 140,000 Total Assets $ 315,000 Liabilities Accounts Payable Income Taxes Payable 24 2$ 25,000 3,000 Other liabilities 2$ 130,000 158,000 Total Current Liabilities Long Term Debt 19,200 177,200 Total Liabilities $ Shareholder Equity Common Shares $ 100,000 Retained Earning Total Shareholders Equity $ 37,800 137,800 Total Liabilities & Shareholder's Equity 315,000