Sanborn Corporation's condensed comparative income statement and balance sheet for 20X8 and 20X7 appears below. Required: 1. Prepare schedules showing the amount and percentage changes from 20X7 to 20X8 for the comparative income statements and the balance sheets (4%). 2. Prepare common-size income statements and balance sheets for 20X7 and 20X8 (4%) 3. Comment on the results in requirements 1 and 2 by identifying favourable and unfavourable changes in the components and composition of the statements (4%) 4. Briefly answer to each of the following questions: a. Why does a decrease in receivable turnover create the need for cash from operating activities? (4\%) b. Why would ratios that include one balance sheet account and one income statement account such as receivable turnover or return on assets, be questionable if they came from quarterly or other interim financial reports? (4\%)