Horizontal and Vertical Analysis

Plato Clothing Company specializes in selling apparel for special occasions. In 2022 and 2023, Plato's account balances were as follows:

	2023		2022
Accounts receivable	$45,000		$54,000
Merchandise inventory	16,650		17,100
Total assets	244,400		210,000
Net sales	231,200		184,800
Cost of goods sold	80,300		114,550

Required:

1. Calculate the change in each of the Plato's accounts from 2022 to 2023. Enter negative sign for decrease values.

Accounts receivable	$fill in the blank 1	increasedecrease
Merchandise inventory	$fill in the blank 3	increasedecrease
Total assets	$fill in the blank 5	increasedecrease
Net sales	$fill in the blank 7	increasedecrease
Cost of goods sold	$fill in the blank 9	increasedecrease

2. Indicate what happened from 2022 to 2023 to accounts receivable and merchandise inventory as a percentage of total assets. Round your answers to the nearest whole percent.

Accounts receivable	decreasedincreased from fill in the blank 12% in 2022 to fill in the blank 13% in 2023.
Merchandise inventory	decreasedincreased from fill in the blank 15% in 2022 to fill in the blank 16% in 2023.

Indicate what happened from 2022 to 2023 to cost of goods sold as a percentage of net sales. Round your answers to the nearest whole percent.

Cost of goods sold

decreasedincreased from fill in the blank 18% in 2022 to fill in the blank 19% in 2023.