Black Crown Initiate Company reported the following.

Sales	$2,040,000
Cost of Goods Sold	$770,000
Operating Expenses	$366,000
Interest expense included in Operating Expenses	$57,000
Income Taxes	40% of income before tax
Stockholders' Equity (Average)	$17,000,000

Do not enter dollar signs or commas in the input boxes. Round your answers to 2 decimal places.

a) Calculate net income.

Net Income = $Answer

b) Calculate the net profit margin.

Net Profit Margin = Answer%

c) Calculate the times interest earned.

Times Interest Earned = Answer times

d) Calculate the return on equity.

Return on Equity = Answer%

The following financial statements are taken from the records of Organo Inc.

a) Use horizontal analysis techniques to compare the changes between 2018 and 2017 balance sheet items.

Do not enter dollar signs or commas in the input boxes. Use the negative sign for negative values. Round all percentages to the nearest whole number (i.e. 21.61% should be entered as 22%).

Organo Inc. Balance Sheet As at October 31
	2018	2017	$ Change	% Change
Current Assets
Cash	$342,900	$328,900	$Answer	Answer%
Accounts Receivable	$134,400	$163,700	$Answer	Answer%
Merchandise Inventory	$416,300	$390,400	$Answer	Answer%
Short-Term Investments	$137,500	$118,600	$Answer	Answer%
Total Current Assets	$1,031,100	$1,001,600	$Answer	Answer%
Noncurrent Assets	$338,600	$257,600	$Answer	Answer%
Total Assets	$1,369,700	$1,259,200	$Answer	Answer%
Current Liabilities	$278,400	$244,500	$Answer	Answer%
Long-Term Liabilities	$170,400	$143,000	$Answer	Answer%
Total Liabilities	$448,800	$387,500	$Answer	Answer%
Stockholders Equity	$920,900	$871,700	$Answer	Answer%
Total Liabilities and Equity	$1,369,700	$1,259,200	$Answer	Answer%

b) Perform a vertical analysis of the income statement for 2018, stating all income statement items as a percentage of net sales.

Organo Inc. Income Statement For the Year Ended October 31
	2018
Sales	$717,000	Answer%
Cost of Goods Sold	$322,650	Answer%
Gross Profit	$394,350	Answer%
Operating Expenses
Administrative Expense	$28,000	Answer%
Selling Expense	$68,600	Answer%
Total Operating Expenses	$96,600	Answer%
Other Income and Expenses
Interest Expense	$16,400	Answer%
Income Before Income Tax	$281,350	Answer%
Income Tax Expense	$84,405	Answer%
Net Income	$196,945	Answer%