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

a$)$ Use horizontal analysis techniques to compare the changes between $2022$ and $2021$ balance sheet items.

Do not enter dollar signs or commas in the input boxes.

Use the negative sign for negative values.

Round all answers to $2$ decimal places.

Organo Inc.

Balance Sheet

As at September $30$

$20222021\%$ Change

Current Assets

Cash $$338,500$ $$329,300$ Answer

$2\mathrm{.}79$

$\%$

Accounts Receivable $$104,000$ $$153,500$ Answer

$\%$

Inventory $$432,100$ $$406,500$ Answer

$\%$

Short$-$Term Investments $$106,600$ $$95,200$ Answer

$\%$

Total Current Assets $$981,200$ $$984,500$ Answer

$-0\mathrm{.}34$

$\%$

Other Assets $$163,800$ $$291,500$ Answer

$\%$

Total Assets $$1,145,000$ $$1,276,000$ Answer

$\%$

Current Liabilities $$292,000$ $$256,200$ Answer

$\%$

Long$-$Term Debt $$96,200$ $$59,900$ Answer

$\%$

Total Liabilities $$388,200$ $$316,100$ Answer

$\%$

Shareholders$$ Equity $$756,800$ $$959,900$ Answer

$-21\mathrm{.}16$

$\%$

Total Liabilities and Equity $$1,145,000$ $$1,276,000$ Answer

$\%$

b$)$ Perform a vertical analysis of the income statement for $2022,$ stating all income statement items as a percentage of net sales.

Organo Inc.

Income Statement

For the Year Ended September $30$

$2022$

Sales $$696,000$ Answer

$100$

$\%$

Cost of Goods Sold $$208,800$ Answer

$\%$

Gross Profit $$487,200$ Answer

$\%$

Operating Expenses

Advertising Expense $$7,300$ Answer

$\%$

Bank Charges Expense $$4,100$ Answer

$\%$

Communication Expense $$8,000$ Answer

$\%$

Depreciation Expense $$5,900$ Answer

$\%$

Professional Fees Expense $$8,000$ Answer

$\%$

Rent Expense $$6,200$ Answer

$\%$

Repairs and Maintenance Expense $$4,400$ Answer

$\%$

Salaries and Wages Expense $$46,100$ Answer

$\%$

Transportation Expense $$4,200$ Answer

$\%$

Utilities Expense $$6,900$ Answer

$\%$

Total Operating Expenses $$101,100$ Answer

$\%$

Net Income $$386,100$ Answer

$\%$