Requirements:a. Prepare horizontal analysis based on the above statements presented (for percent: round of your answers to 2 decimal places) Music Lover, Inc.xlsxb. Evaluate the company's financial position and results of operation using the comparative statement analysis:i. Short-term solvency analysisii. Long-term financial position analysis iii. Operating efficiency and profitability analysis

Music Lover, Inc. Comparative Statement of Financial Position December 31, 2019 and 2018 Increase(Decrease) 2019 ... 2018 Amount Percent Assets Current Assets Cash 68,250 Accounts receivable (net) 218,549 2..42..... 184,978 2...... Inventory 223,242 197,097 Prepaid expenses 67,710 76,542 Total current assets 579,893 526,867 Noncurrent Assets Plant, Property and Equipment (net) 90,503 110,987 Total Assets 670,396 637,854 Liabilities and Equity Current Liabilities Accounts payable 158,214 139,135 Bank loans and other payables .71,672 56,769 2...2...... Current portion of notes payable 30,000 30,000 Total current liabilities 259,886 225,904 Long-term liabilities Notes payable (11%) 139,000 169,000 Total liabilities 398,886 394,904 Equity Preference shares, P8 dividend, P100 par 70,000 70,000 Ordinary shares, P1 par value 10,000 10,000 Additional paid-in capital 90,000 90,000 Total paid-in capital 170,000 170,000 Retained earnings 101,510 72,950 Total equity 271,510 242,950 Total liabilities and equity 670,396 637,854 Music Lover, Inc. Comparative Income Statement For the Years Ended December 31, 2019 and 2018 Increase(Decrease) 2019 2018 Amount Percent Sales revenue 2,000,000 1,801,802 Expenses Cost of goods sold 12472,000 12309,910 Selling 248,000 230,000 Administrative 138,000 142,000 Total expenses 1,858,000 1,681,910 Operating income 142,000 119,892 Interest expense 27,907 29,270 Income before taxes 114,093 90,622 Income taxes (350) 39933 31718 Net income 74,160 58,904 Dividends to preference shareholders 5,600 5,600 Net income remaining for ordinary shareholders 68,560 53,304 Dividends to ordinary shareholders 40,000 32,000 Net income added to retained earnings 28,560 21,304 Retained earnings, beg. of year 72,950 51,646 Retained earnings, end of year 101,510 72,950