You have been asked to examine the financial statements for Karde Inc. and to comment on trends.

a$)$ Use horizontal analysis tools to compare the changes between $2019$ and $2020$ line items for the balance sheet

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.

Karde Inc.

Balance Sheet

As at July $31$

$2020$

$2019$

$\%$ Change

Current Assets

Cash

$$307,400$

$$319,400$

Accounts Receivable

$$220,400$

$$176,400$

Inventory

$$352,200$

$$382,700||$

Short$-$Term Investments

$$90,200$

$$104,600$

Total Current Assets

$$970,200$

$$983,100$

Other Assets

$$140,600$

$$286,900$

Total Assets

$$1,110,800$ $$1,270,000$

Current Liabilities

$$216,200$

$$248,900$

Long$-$Term Debt

$$84,200$

$$116,000$

Total Liabilities

$$300,400$

$$364,900$

Shareholders' Equity

$$810,400|$

$$905,100$

Total Liabilities and Equity $$1,110,800$ $$1,270,000$

b$)$ Use vertical analysis tools to compare line items to the sales base figure.

Karde Inc.

Income Statement

For the Year Ended July $31$

$2020$

Sales

$$689,000$

$\%$

Cost of Sales

$$241,150$

$\%$

Gross Profit

$$447,850$

$\%$

Operating Expenses

Advertising Expense

$$5,700$

$\%$

Bank Charges Expense

$$5,100$

$\%$

Communication Expense

$$4,400$

$$

Depreciation Expense

$$5,100$

$\%$

Professional Fees Expense

$$5,900$

$\%$

Rent Expense

$$6,700$

$\%$

Repairs and Maintenance Expense

$$4,100$

$\%$

Salaries and Wages Expense

$$77,700$

$\%$

Transportation Expense

$$4,700$

$\%$

Utilities Expense

$$5,100$

$\%$

Total Operating Expenses

$$124,500$

$\%$

Net income$$

$$323,350$

$\%$