3. Please prepare a vertical and horizontal analysis for the following statement of operations budget and compare it with the year 2020. Identify and explain 5 of the most important issues. I require the solution soon. Thank You.

Statement of Operations Year ended March 31, 2020, with comparative information for 2019 Revenues: Indigenous Services Canada MOECC MIRR Canada Mortgage and Housing Corporation Independent Electricity System Operator Interest Other Budget 2020 2019 (Note 10) $ 3,601,350 $ 8,205,014 $ 7,340,865 459,479 86,815 379,443 75,904 97,356 52,823 68,505 617,363 200,969 3,601,350 9,351,999 8,232,537 Operating expenditures: Salaries Benefits Travel Board, committees and meetings Professional services Rent General and office Copier, fax, telephone and postage Computer support Training Insurance Contributions Annual conference Amortization of tangible capital assets Loss on disposal of capital assets 948,000 148,000 130,000 100,000 165,000 260,500 240,000 51,000 40,000 45,000 1,884,890 369,412 555,975 163,786 318,932 212,296 9,344 127,846 131,669 49,488 93,461 6,000 1,707 131,609 77,763 4,134,178 2,298,652 362,025 679,810 516,319 385,821 366,264 328,198 142,161 132,260 108,591 83,027 37,717 28,878 63,186 10,000 50,000 2,187,500 5,532,909 2,413,850 Project expenses (Schedule 1) Board surplus project expenses (Schedule 2) 4,445,330 138,478 4,583,808 3,793,269 130,057 3,923,326 2,413,850 Annual surplus (deficit) (1,000,000) 634,013 (1,223,698) Accumulated surplus, beginning of year 2,976,799 2,976,799 4,200,497 Accumulated surplus, end of year $ 1,976,799 $ 3,610,812 $ 2,976,799 Statement of Operations Year ended March 31, 2020, with comparative information for 2019 Revenues: Indigenous Services Canada MOECC MIRR Canada Mortgage and Housing Corporation Independent Electricity System Operator Interest Other Budget 2020 2019 (Note 10) $ 3,601,350 $ 8,205,014 $ 7,340,865 459,479 86,815 379,443 75,904 97,356 52,823 68,505 617,363 200,969 3,601,350 9,351,999 8,232,537 Operating expenditures: Salaries Benefits Travel Board, committees and meetings Professional services Rent General and office Copier, fax, telephone and postage Computer support Training Insurance Contributions Annual conference Amortization of tangible capital assets Loss on disposal of capital assets 948,000 148,000 130,000 100,000 165,000 260,500 240,000 51,000 40,000 45,000 1,884,890 369,412 555,975 163,786 318,932 212,296 9,344 127,846 131,669 49,488 93,461 6,000 1,707 131,609 77,763 4,134,178 2,298,652 362,025 679,810 516,319 385,821 366,264 328,198 142,161 132,260 108,591 83,027 37,717 28,878 63,186 10,000 50,000 2,187,500 5,532,909 2,413,850 Project expenses (Schedule 1) Board surplus project expenses (Schedule 2) 4,445,330 138,478 4,583,808 3,793,269 130,057 3,923,326 2,413,850 Annual surplus (deficit) (1,000,000) 634,013 (1,223,698) Accumulated surplus, beginning of year 2,976,799 2,976,799 4,200,497 Accumulated surplus, end of year $ 1,976,799 $ 3,610,812 $ 2,976,799