Question 5 The comparative income statement for the financial year ended June 30 for Fiona Flamingo Farms is as follows: Fiona Flamingo Farms Comparative statement of comprehensive income For the vears ended 30 June 2016 2015 Sales Revenue Less: Cost of Goods Sold Gross Profit 770,000 487,000 283,000 690,000 345.000 345,000 97,000 71,000 82,000 79,000 Selling Expenses Administrative expenses Finance Expenses Profit before income tax expense Income tax expense Profit after income tax expense 9,000 3.000 106,000 31 ,800 74,200 181,000 54,300 126,700 Required: A. Perform horizontal analysis and vertical analysis (for 2016 only) on the income statement. In your answer please remember to indicate if it is an INCREASE or (DECREASE) and round your findings to ONE decimal place [e.g.-32.996% is-33.0% or minus 33.0% or (33,0%). Comment on the significant changes disclosed by the comparative statement of comprehensive income. B. Prepare a statement of retained earnings for the year ended June 30, 2016. (Retained earnings at July 1,2015 were $58,000, dividends declared and paid during the financial year were $37,000 C. D. Explain how profits for the year ended June 30, 2015 were $126,700 yet Retained Earnings at July 1, 2015 were only S58,000