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

a) Use horizontal analysis techniques to compare the changes between 2019 and 2018 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%).

Karde Inc.

Balance Sheet

As at February 2820192018$ Change% ChangeCurrent AssetsCash$324,900$315,600$Answer

Answer

%Accounts Receivable$131,000$171,200$Answer

Answer

%Merchandise Inventory$458,200$418,500$Answer

Answer

%Short-Term Investments$131,800$109,200$Answer

Answer

%Total Current Assets$1,045,900$1,014,500$Answer

Answer

%Noncurrent Assets$233,100$339,100$Answer

Answer

%Total Assets$1,279,000$1,353,600$Answer

Answer

%Current Liabilities$220,600$264,000$Answer

Answer

%Long-Term Liabilities$22,200$61,000$Answer

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%Total Liabilities$242,800$325,000$Answer

Answer

%Stockholders' Equity$1,036,200$1,028,600$Answer

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%Total Liabilities and Equity$1,279,000$1,353,600$Answer

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

Karde Inc.

Income Statement

For the Year Ended February 282019Sales$682,000Answer

%Cost of Goods Sold$272,800Answer

%Gross Profit$409,200Answer

%Operating ExpensesAdministrative Expense$28,800Answer

%Selling Expense$79,400Answer

%Total Operating Expenses$108,200Answer

%Other Income and ExpensesInterest Expense$17,100Answer

%Income Before Income Tax$283,900Answer

%Income Tax Expense$85,170Answer

%Net Income$198,730Answer

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