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

a$)$ Use horizontal analysis techniques to compare the changes between $2023$ and $2022$ 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 $2$ decimal places.

Organo Inc.

Balance Sheet

As at May $31$

$20232022$ $ Change $\%$ Change

Current Assets

Cash $$337,200$ $$325,500$ $Answer

$-11700$

Answer

$4$

$\%$

Accounts Receivable $$203,300$ $$168,900$ $Answer

$-34400$

Answer

$20$

$\%$

Merchandise Inventory $$417,600$ $$386,100$ $Answer

$-31500$

Answer

$8$

$\%$

Short$-$Term Investments $$88,800$ $$114,900$ $Answer

$26100$

Answer

$23$

$\%$

Total Current Assets $$1,046,900$ $$995,400$ $Answer

$-51500$

Answer

$5$

$\%$

Long$-$Term Assets $$417,500$ $$278,100$ $Answer

$-139400$

Answer

$50$

$\%$

Total Assets $$1,464,400$ $$1,273,500$ $Answer

$190900$

Answer

$15$

$\%$

Current Liabilities $$194,000$ $$224,000$ $Answer

$30000$

Answer

$13$

$\%$

Long$-$Term Liabilities $$86,500$ $$121,700$ $Answer

$35200$

Answer

$29$

$\%$

Total Liabilities $$280,500$ $$345,700$ $Answer

$65200$

Answer

$19$

$\%$

Shareholders$$ Equity $$1,183,900$ $$927,800$ $Answer

$256100$

Answer

$30$

$\%$

Total Liabilities and Equity $$1,464,400$ $$1,273,500$ $Answer

$190900$

Answer

$15$

$\%$

b$)$ Perform a vertical analysis of the income statement for $2023,$ stating all income statement items as a percentage of net sales.

Organo Inc.

Income Statement

For the Year Ended December $31$

$2023$

Sales $$718,000$ Answer

$100$

$\%$

Cost of Goods Sold $$323,100$ Answer

$45$

$\%$

Gross Profit $$394,900$ Answer

$55$

$\%$

Operating Expenses

Advertising Expense $$4,900$ Answer

$7$

$\%$

Utilities Expense $$8,100$ Answer

$1$

$\%$

Rent Expense $$4,400$ Answer

$0\mathrm{.}61$

$\%$

Salaries and Wages Expense $$45,200$ Answer

$6$

$\%$

Depreciation Expense $$34,400$ Answer

$5$

$\%$

Interest Expense $$7,700$ Answer

$1$

$\%$

Total Expenses $$104,700$ Answer

$14$

$\%$

Income Before Income Tax $$290,200$ Answer

$40$

$\%$

Income Tax Expense $$87,060$ Answer

$12$

$\%$

Net Income $$203,140$ Answer

$28$

$\%$