The comparative balance sheet of Cookie & Coffee Creations Inc. at October 31, 2023 for the years 2023 and 2022, and the income statements for the years ended October 31, 2022 and 2023, are presented below. COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31 Assets Cash Accounts receivable. Inventory Prepaid expenses Equipment Accumulated depreciation Total assets 2023 2022 $29,074 $11,550 3,250 2,710 7,897 7,450 5.800 6,050 102,000 75,500 (25,200) (9,100) $122,821 $94,160 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Dividends payable Salaries and wages payable Interest payable Note payable-current portion Note payable-long-term portion $1,150 $2.450 9.251 7.200 27,000 27,000 7,250 1,280 188 4,000 0 6,000 Note payable-current portion 4,000 0 Note payable-long-term portion 6,000 0 Preferred stock, no par. $6 cumulative-3,000 and 2,800 shares issued, respectively 15,000 14,000 Common stock, $1 par-25,930 shares issued 25.930 25.930 Additional paid in capital-treasury stock 250 0 Retained earnings Less treasury stock Total liabilities and stockholders' equity 26,802 16,800 0 (500) $122,821 $94,160 COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31 2023 2022 Sales $485,625 $462,500 Cost of goods sold 222,694 208,125 Gross profit 262,931 254,375 Operating expenses Salaries and wages expense 147,979 146,350 Depreciation expense 17,600 9.100 Other operating expenses 48,186 42,925 Total operating expenses 213,765 198,375 Total operating expenses 213,765 198,375 Income from operations 49,166 56,000 Other expenses Interest expense 413 0 Loss on disposal of plant assets 2,500 0 Total other expenses 2.913 0 Income before income tax 46,253. 56,000 Income tax expense 9,251 14,000 Net income $37,002 $42,000 Additional information: Natalie and Curtis are thinking about borrowing an additional $20,000 to buy more kitchen equipment. The loan would be repaid over a 4-year period. The terms of the loan provide for equal semi-annual payments of $2,500 on May 1 and November 1 of each year, plus interest of 5% on the outstanding balance. Calculate the following ratios for 2022 and 2023. (Round current ratio to 2 decimal places, eg. 12.61, debt to assets and gross profit rate to O decimal places, eg. 12 and all other answers to 1 decimal place, e.g. 12.6%) rent ratio t to assets ss profit rate hit margin urn on assets (Total assets at November 1, 2021, were $35,180.) 2023 0.94 45 9 54 9 7.6 9 34.1 9 urn on common stockholders' equity (Total common stockholders' equity at November 1, 2021, $25,180. Dividends on preferred stock were $16,800 in 2022 and $18,000 in 2023). 39.9 Prepare a horizontal analysis of the income statement for Cookie & Coffee Creations Inc. using 2022 as a base year. (If amount and percentage are a decrease show the numbers as negative, eg.-55,000, -12.25 % or (55,000), (12.25 % ) . Round percentages to O decimal places, e.g. 12%) COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31 2023 2022 Difference Sales $485,625 $462,500 $ 23125 Horizontal Analysis 5 % Cost of goods sold 222,694 208,125 14569 7 Gross profit 262,931 254,375 8556 3 se 8 Operating expenses Salaries and wages expense 147,979 146,350. 1629 1 % Depreciation expense 17,600 9.100 8500 93 % Other operating expenses 48,186 42.925 5261 11 96 Total operating expenses 213,765 198,375 15390 7 Income from operations 49,166 56,000 (6834) (12) % ** Other expenses Interest expense 413 0 413 Gross profit 3 96 262.931 254,375 8556 Operating expenses Salaries and wages expense 147.979 146,350 1629 1 Depreciation expense 17,600 9,100 8500 93 % Other operating expenses 48,186 42,925 5261 11 Total operating expenses 213,765 198,375 15390 7 ** Income from operations 49.166 56,000 (6834) 12 (12) % Other expenses Interest expense 413 0 413 Loss on disposal of plant 2,500 0 2500 assets Total other expenses. 2,913 0 2913 Income before income tax 46,253 56,000 (9747) (17.41) Income tax expense Net income 9,251 14,000 (4749) (33.92) % $37,002 $42,000 (4998) (11.9) Prepare a vertical analysis of the income statement for Cookie & Coffee Creations Inc. for 2023 and 2022. (Round percentages to 2 decimal places, eg. 12.25%. Do not leave any answer field blank. Enter 0 for amounts.) COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31 2023 Percentage 2022 Vertical Analysis $485.625 100 % $462,500 100 % Sales Cost of goods sold 222,694 45.86 % 208,125 45 % Gross profit 262,931 54.14 % 254,375 55 55 % Operating expenses Salaries and wages 147.979 30.47 % 146,350 31.64 % expense Depreciation expense 17,600 3.62 % 9.100 197 % Other operating 48,186 9.92 %6 42,925 9.28 % expenses Total operating 213,765 44.02 % 198,375 42.89 % expenses Income from operations 49,166 10.12 % 56,000 12.11 % Other expenses Interest expense 413 09 % Other expenses Interest expense 413 .09 96 0 0 % Loss on disposal of 2,500 % 0 0 % plant assets Total other expenses 2,913 % 0 0 96 Income before income tax 46,253 % 56,000 8 Income tax expense 9,251 % 14,000 AR Net income $37,002 % $42,000 26