PART A-PRACTICAL Question 1 The comparative income statement for the financial year ended June 30 for Monica Flamingo Farms is as follows: Monica Flamingo Farms Comparative statement of comprehensive income For the years ended 30 June Sales Revenue Less: Cost of Goods Sold Gross Profit 2020 $ 770,000 487,000 283,000 2019 $ 690,000 345,000 345,000 Selling Expenses Administrative expenses Finance Expenses Profit before income tax expense Income tax expense Profit after income tax expense 97,000 71,000 9,000 106,000 31,800 74,200 82,000 79,000 3.000 181,000 54,300 126,700 Required: A. Perform horizontal analysis and vertical analysis (for 2020 only) on the income statement. In your answer please remember to indicate if it is an INCREASE or (DECREASE) and round your findings to ONE decimal place [e.g. -32.996% is -33.0% or minus 33.0% or (33.0%). Comment on the significant changes disclosed by the comparative statement of comprehensive income. What has caused the changes to occur? B. c. Prepare a statement of retained earnings for the year ended June 30, 2020. (Retained earnings at July 1, 2019 were $58,000, dividends declared and paid during the financial year were $37,000. D. Explain how profits for the year ended June 30, 2019 were $126,700 yet Retained Earnings at July 1, 2019 were only $58,000