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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
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 July 31 | ||||
2022 | 2021 | % Change | ||
Current Assets | ||||
Cash | $327,100 | $319,800 | Answer % | |
Accounts Receivable | $230,800 | $184,500 | Answer % | |
Inventory | $418,000 | $380,700 | Answer % | |
Short-Term Investments | $101,100 | $116,800 | Answer % | |
Total Current Assets | $1,077,000 | $1,001,800 | Answer % | |
Other Assets | $401,500 | $291,000 | Answer % | |
Total Assets | $1,478,500 | $1,292,800 | Answer % | |
Current Liabilities | $317,600 | $269,200 | Answer % | |
Long-Term Debt | $120,100 | $93,300 | Answer % | |
Total Liabilities | $437,700 | $362,500 | Answer % | |
Shareholders Equity | $1,040,800 | $930,300 | Answer % | |
Total Liabilities and Equity | $1,478,500 | $1,292,800 | 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 July 31 | ||
2022 | ||
Sales | $686,000 | Answer % |
Cost of Goods Sold | $308,700 | Answer % |
Gross Profit | $377,300 | Answer % |
Operating Expenses | ||
Advertising Expense | $8,000 | Answer % |
Bank Charges Expense | $4,100 | Answer % |
Communication Expense | $5,200 | Answer % |
Depreciation Expense | $6,600 | Answer % |
Professional Fees Expense | $6,100 | Answer % |
Rent Expense | $4,500 | Answer % |
Repairs and Maintenance Expense | $4,200 | Answer % |
Salaries and Wages Expense | $43,200 | Answer % |
Transportation Expense | $8,000 | Answer Not answered Mark 0.00 out of 1.00 % |
Utilities Expense | $7,700 | Answer % |
Total Operating Expenses | $97,600 | Answer % |
Net Income | $279,700 | Answer % |
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