Use the financial statements for Rhythmic Dance Studio to complete one horizontal analysis based on income statement balances and another based on balance sheet balances. (Hint: Use amounts from two statements to create each horizontal analysis.) Notes: All calculations throughout this exercise should be rounded to two decimal places. Within your answer enter all accounts in the same order given in the instructions for the most recent year. Rhythmic Dance Studio Income Statement For the Year Ended December 31, 2026 Revenues: Service Revenue $ 194,000 Expenses: Salaries Expense $ 82,400 Rent Expense 32,275 Supplies Expense 8,370 Telephone Expense 7,000 Utilities Expense 6,200 Depreciation Expense 4,200 Postage Expense 2,700 Miscellaneous Expense 8,500 Total Expenses 151,645 Net Income $ 42,355 Rhythmic Dance Studio Balance Sheet December 31, 2026 Assets: Cash $ 41,000 Accounts Receivable 8,250 Supplies 24,975 Furniture $ 12,500 Accum. Dep. - Furniture 2,200 10,300 Equipment 26,500 Accum. Dep. - Equipment 14,750 11,750 Total Assets $ 96,275 Liabilities: Accounts Payable 52,500 Salaries Payable 4,150 Owner's Equity: Lucia Manning, Capital 39,625 Total Liabilities & Owner's Equity $ 96,275 Rhythmic Dance Studio Income Statement For the Year Ended December 31, 2027 Revenues: Service Revenue $ 261,500 Expenses: Salaries Expense $ 101,450 Rent Expense 32,275 Supplies Expense 13,500 Telephone Expense 9,150 Depreciation Expense 6,300 Utilities Expense 5,850 Postage Expense 4,000 Miscellaneous Expense 17,200 Total Expenses 189,725 Net Income $ 71,775 Rhythmic Dance Studio Balance Sheet December 31, 2027 Assets: Cash $ 62,500 Accounts Receivable 11,200 Supplies 24,140 Furniture $ 12,500 Accum. Dep. - Furniture 4,350 8,150 Equipment 38,000 Accum. Dep. - Equipment 18,900 19,100 Total Assets $ 125,090 Liabilities: Accounts Payable 50,300 Salaries Payable 5,650 Owner's Equity: Lucia Manning, Capital 69,140 Total Liabilities & Owner's Equity $ 125,090