Smart Electric Parts Part I Preparing Comparative Financial Statements is the most used technique for analyzing financial statements. This technique determines a business's profitability and financial position by comparing financial statements for two or more periods. The income statements and balance sheets are typically prepared comparatively for such an analysis. Jenny Chang, a finance student at California Polytechnic State University, received an internship in the finance management training program with Smart Electric Parts Company. Jenny was asked to prepare the company's financial statements and provide a comparative analysis. These statements primarily include income, balance sheets, and cash flow statements. Financial information as of December 2022 Financial information as of December 2023 Cost of goods sold Cash Depreciation Interest expense Selling & Administrative Accounts payable $1,261,038 Cost of goods sold $182,187 Cash Accounts payable $1,592,143 $272,478 $355,810 Depreciation $402,170 $53,211 Interest expense $55,098 $243,787 Selling & Administrative $323,352 $320,143 $361,404 Net fixed assets $1,569,750 Net fixed assets $1,912,500 Sales $2,472,590 Sales $3,012,392 Accounts receivable $121,887 Accounts receivable $161,717 Current portion of Long-term debt $146,510 Current portion of Long-term debt $209,703 Long-term debt $591,235 Long-term debt $612,195 Equity in 12/31 2021 570667 Equity raised in 2023 45735 Inventory $27,119 Inventory $37,216 Cost of Debt 9% Cost of Debt 9% Unlevered Cost of Equity 12% Unlevered Cost of Equity 12% Outstanding Shares 1,000,000 Outstanding Shares Tax rate 35% Tax rate 1,000,000 35% Dividend percentage 25% Dividend percentage 25% 1. Prepare income and balance sheet statements for 2022 and 2023. 2. Prepare cash flow from assets and cash flow to creditors and equity holders. 3. What are the capital spending and changes in net working capital for 2023? 4. What is the DuPont Identity for 2022 and 2023? Explain the firm's condition and performance changes, whether they indicate improvement, deterioration, or some combination. 5. What are the internal and sustainable growth rates for 2022 and 2023? Define and discuss the implication of these two growth rates in the company's long-term planning.