You have been asked to examine the financial statements for Organo 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.

Organo Inc.

Balance Sheet

As at July $31$

$20202019\%$ Change

Current Assets

Cash $$314,600$ $$328,100$ Answer

$\%$

Accounts Receivable $$138,700$ $$188,700$ Answer

$\%$

Inventory $$373,700$ $$405,000$ Answer

$\%$

Short$-$Term Investments $$71,300$ $$90,900$ Answer

$\%$

Total Current Assets $$898,300$ $$1,012,700$ Answer

$\%$

Other Assets $$344,000$ $$255,100$ Answer

$\%$

Total Assets $$1,242,300$ $$1,267,800$ Answer

$\%$

Current Liabilities $$173,000$ $$212,100$ Answer

$\%$

Long$-$Term Debt $$33,500$ $$72,100$ Answer

$\%$

Total Liabilities $$206,500$ $$284,200$ Answer

$\%$

Shareholders$$ Equity $$1,035,800$ $$983,600$ Answer

$\%$

Total Liabilities and Equity $$1,242,300$ $$1,267,800$ Answer

$\%$

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

Organo Inc.

Income Statement

For the Year Ended July $31$

$2020$

Sales $$692,000$ Answer

$\%$

Cost of Sales $$276,800$ Answer

$\%$

Gross Profit $$415,200$ Answer

$\%$

Operating Expenses

Advertising Expense $$8,000$ Answer

$\%$

Bank Charges Expense $$7,200$ Answer

$\%$

Communication Expense $$5,100$ Answer

$\%$

Depreciation Expense $$6,700$ Answer

$\%$

Professional Fees Expense $$8,000$ Answer

$\%$

Rent Expense $$5,500$ Answer

$\%$

Repairs and Maintenance Expense $$6,800$ Answer

$\%$

Salaries and Wages Expense $$41,300$ Answer

$\%$

Transportation Expense $$6,000$ Answer

$\%$

Utilities Expense $$4,500$ Answer

$\%$

Total Operating Expenses $$99,100$ Answer

$\%$

Net Income $$316,100$ Answer

$\%$