Module 7 Quiz Complete the horizontal and vertical analysis for the income statement and balance sheet below. Please use Excel formulas and proper cell referencing. MC Tutoring Plus MC Tutoring Plus Income Statement Income Statement July 31, 20X1 July 31, 20X1 Account 20X6 20X5 Horizontal Analysis $ Change Horizontal Analysis % Change Account 20X6 Vertical Analysis 20X5 20X6 Sales 87,950 75,840 Sales 87,950 75,840 Cost of goods sold 30,520 32,150) Cost of goods sold 30,520 32,150 Gross profit 57,430 43,690 Gross profit 57,430 43,690 Selling expenses 15,150 13,020 Selling expenses 15,150 13,020 General and administrative expenses 8,490 8,290 General and administrative expenses 8,490 8,290 Total operating expenses 23,640 21,310 Total operating expenses 23,640 21,310 Operating income 33,790 22,380 Operating income 33,790 22,380 Other income, net 5,000 3,500 Other income, net 5,000 3,500 Net income 38,790 25,880 Net income 38,790 25,880 MC Tutoring Plus MC Tutoring Plus Balance Sheet Balance Sheet July 31, 20X1 July 31, 20X1 Account 20X6 20X5 Horizontal Analysis Horizontal Analysis Account 20X6 $ Change % Change Vertical Analysis 20X6 20X5 Cash 238,500 125,840 Cash 238,500 125,840 Accounts receivable 30,450 32,150 Accounts receivable 30,450 32,150 Marketable securities 95,200 87,860 Marketable securities 95,200 87,860 Total current assets 364,150 245,850 Total current assets 364,150 245,850 Plant assets 234,000 232,000 Plant assets 234,000 232,000 Accumulated depreciation 55,400 50,300 Accumulated depreciation 55,400 Total plant assets 50,300 178,600 181,700 Total plant assets 178,600 Total assets 181,700 542,750 427,550 Total assets $42,750 Accounts payable 427,550 36,000 38,400 Notes payable Accounts payable 36,000 38,400 139,600 120,900 Notes payable Total liabilities 139,600 120,900 175,600 159,300 Total liabilities Common stock 175,600 20,000 159,300 15,000 Additional paid-in capital Common stock 20,000 150,000 90,000 15,000 Retained earnings Additional paid-in capital 150,000 197,150 90,000 163,250 Total liabilities and equity Retained earnings 542,750 197,150 427,550 163,250 Total liabilities and equity 542,750 427,550