The following information is available for Star Corporation: 2019 2020 Sales Cost of goods sold Selling & Administrative expenses Depreciation Interest Taxes Net income 501,441 255,605 50,268 72,158 15,687 22,622 85, 101 611,224 322,742 65,610 81,559 17,980 25,900 97,433 Instructions: 1. For each year, calculate the firm's gross profit margin, operating profit margin, and net profit margin. Make conclusion on how the firm's profitability changed from 2019 to 2020. (10 points) 2. You and your friend came up with an interesting business idea and you want to legally set up the firm, in which each of you will own 50% of the business. The firm is expected to earn 300,000 before taxes next year. The corporate tax rate is 24% and the personal tax rate is 25%. Assuming that the firm does not retain any earnings, calculate and compare how much spendable income each of you receives if the business is organized as a corporation and a partnership. What other factors should you consider when you decide whether to set up the business as a corporation or partnership? (10 points)