Question One At the beginning of 2014, Carl's Cupcakes' owner-manager Carl Bonner called you in for some financial advice about the business and his plans for its future. Carl has plans to expand Carl's Cupcake's operations in the near future and was hoping to at least partially finance the expansion from the business' existing operating cash flows Carl doesn't have a good head for figures and was only able to provide you with some of Carl's Cupcakes' financial statements for year ended 31 December 2013. These are d below Carl's Cupcakes Income Statements for the vear ended 31 December (S 2012 520,000 10,300 509,700 152,700 357.000 2013 Sales Less Discounts and allowances Net Sales Cost of goods sold Gross Profit Less Operating Expenses Wages expense Rent expense Advertising expense Depreciation ex Insurance expense Utilities Interest ex Total Operating Expenses Net Income before tax Income tax expense Net Income after tax 670,000 17,100 652,900 196,900 456,000 125,000 50,000 8,000 25,000 3,500 12,500 7,000 231.000 126,000 35,000 91,000 147,000 50,000 12,000 25,000 3,500 15,500 8,000 261,000 195,000 55,000 140,000