The balance sheets for Fantasy Football for 2021 and 2020 are provided below.

Required:

1. Prepare a vertical analysis of Fantasy Football’s 2021 and 2020 balance sheets. Express each amount as a percentage of total assets for that year.

2. Prepare a horizontal analysis of Fantasy Football’s 2021 balance sheet using 2020 as the base year.

Transcribed Image Text:

FANTASY FOOTBALL Balance Sheets December 31 2021 2020 Assets Current assets: Cash $ 208,000 $ 262,200 Accounts receivable 856,000 999,400 Inventory 1,900,000 1,349,000 Supplies 124,000 87,400 Long-term assets: Equipment 1,292,000 1,292,000 Less: Accumulated depreciation (380,000) $4,000,000 (190,000) $3,800,000 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 168,000 $ 129,200 Interest payable 3,800 Income tax payable 76,000 76,000 Long-term liabilities: Notes payable 760,000 760,000 Stockholders' equity: Common stock 786,600 786,600 Retained earnings 2,209,400 $4,000,000 2,044,400 Total liabilities and stockholders' equity $3,800,000