QUESTION 3-(30 pts) Income statement of ABC company is given below: Sales Revenue COGS (-) Gross Profit Operating Expenses (-) Net Profit 2019 9,000 6,000 3,000 800 2.200 2018 6,000 4,000 2,000 200 1.800 2017 7,500 5.000 2,500 300 2.200 a) Show the trend percentages for three-year period taking 2017 as the base year. (Show supportive calculations) (10 pts) b) First comment on the trends of each item and write your conclusion whether overall trends are favorable or Unfavorable. (20 pts, 150 words) QUESTION 4- (20 pts) Evaluate the below trend in Sales and COGS of company XYZ considering the following inflation rates in the country. (150 words) 2019 130 120 Sales ......... Cost of goods sold 2018 110 108 2017 100 100 Inflation increased by 10 % from the end of 2017 to the end of 2018. Inflation increased by 20 % from the end of 2018 to the end of 2019