Sales Revenue ABC company's Income Statements for 2016-2020 are given below: 2020 2019 2018 2017 2016 $7,700 $11,000 $16,500 $17,600 $26,400 COGS (-) 5,390 6,050 6,600 8,800 14,520 Gross Profit 2,310 4,950 9,900 8,800 11,880 Operating Expenses (-) 1,617 3,300 3,795 3,344 6,072 General Admin Expenses (-) 1,155 1,980 2,475 2,288 3,960 Marketing and Sales Expenses (-) 462 1,320 1,320 1,056 2,112 Operating Profit 693 1,650 6,105 5,456 5,808 Interest Expense (-) 1,100 1,100 1,100 770 880 Gain on Sale of an unused building 880 0 660 0 1,760 Profit Before Tax 473 550 5,665 4,686 6,688 Tax Expense (-) 38 44 453 375 535 Net Profit 435 506 5,212 4,311 6,153 a) Show the index-trend percentages for each item for five years taking 2016 as the base year. (Show supportive calculations) (15 pts) b) Indicate whether the trend for COGS and General Administration Expenses are Favorable or Unfavorable? (5 pts) c) Write your conclusion whether the overall trend in Net Profit is Favorable or Unfavorable explaining the reasons (Provide at least three reasons). (5 pts, min 100 w.) d) If there was 5% inflation each year, would you change your conclusion for (c)? (Support your answer by numbers and calculations) (10 pts, min 150 w.) QUESTION 2) (20 pts) a) List four risk factors that may affect the financial success of a company that manufactures and sells cars. (10 pts, min 250 w.) b) Discuss how each of those five factors you provided in (a) may affect the profitability of the dairy business (10 pts, min 150 w.) QUESTION 3) (15 pts) Discuss how financial statements reflect the results of business activities. Note: Don't forget to give references to the balance sheet, income statement, statement of cash flows, and three business activities in your discussion. (15 pts, min 300 w.)