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 $$308,000$ $$315,100$ $Answer

Answer

$\%$

Accounts Receivable $$148,000$ $$192,800$ $Answer

Answer

$\%$

Merchandise Inventory $$362,700$ $$393,500$ $Answer

Answer

$\%$

Short$-$Term Investments $$136,200$ $$115,100$ $Answer

Answer

$\%$

Total Current Assets $$954,900$ $$1,016,500$ $Answer

Answer

$\%$

Long$-$Term Assets $$227,800$ $$314,300$ $Answer

Answer

$\%$

Total Assets $$1,182,700$ $$1,330,800$ $Answer

Answer

$\%$

Current Liabilities $$293,000$ $$262,200$ $Answer

Answer

$\%$

Long$-$Term Liabilities $$147,000$ $$111,300$ $Answer

Answer

$\%$

Total Liabilities $$440,000$ $$373,500$ $Answer

Answer

$\%$

Shareholders Equity $$742,700$ $$957,300$ $Answer

Answer

$\%$

Total Liabilities and Equity $$1,182,700$ $$1,330,800$ $Answer

Answer

$\%$

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

Organo Inc.

Income Statement

For the Year Ended December $31$

$2023$

Sales $$694,000$ Answer

$\%$

Cost of Goods Sold $$242,900$ Answer

$\%$

Gross Profit $$451,100$ Answer

$\%$

Operating Expenses

Advertising Expense $$3,800$ Answer

$\%$

Utilities Expense $$7,100$ Answer

$\%$

Rent Expense $$5,400$ Answer

$\%$

Salaries and Wages Expense $$49,200$ Answer

$\%$

Depreciation Expense $$34,700$ Answer

$\%$

Interest Expense $$8,200$ Answer

$\%$

Total Expenses $$108,400$ Answer

$\%$

Income Before Income Tax $$342,700$ Answer

$\%$

Income Tax Expense $$102,810$ Answer

$\%$

Net Income $$239,890$ Answer

$\%$