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Required information The following information applies to the questions displayed below) The balance sheets for Federer Sports Apparel for 2022 and 2021 are presented below. Required: 1. Prepare a vertical analysis of the balance sheet data for 2022 and 2021. Express each amount as a percentage of total assets. (Amounts to be deducted should be indicated by a minus sign. Round your answers to 1 decimal place.) 2021 Amount % es FEDERER SPORTS APPAREL Balance Sheet December 31 2022 Amount % Assets Cash $ 2,300,000 Accounts receivable 1,500,000 Inventory 2,800,000 Buildings 11,000,000 Less: Accumulated depreciation (2,000,000) Total assets $ 15,000,000 Liabilities and Stockholders' Equity Accounts payable $ 1,450,000 Contingent liability 1,500,000 Common stock 8,000,000 Retained earnings 4,650,000 Total liabilities and stockholders' equity $ 15.600.000 $ 800.000 1.200,000 1,700,000 11,000,000 (1,000,000) $ 13,700.000 $ 1,700,000 8,000,000 4,000,000 $ 13,700,000 Required information [The following information applies to the questions displayed below) The balance sheets for Federer Sports Apparel for 2022 and 2021 are presented below. 2. Prepare a horizontal analysis for 2022 using 2021 as the base year. (Note: If the percentage Increase or decrease cannot be calculated, then leave the cell blank. Decreases should be indicated by a minus sign. Round your percentage answers to 1 decimal place.) Increase (Decrease) Amount FEDERER SPORTS APPAREL Balance Sheet December 31 Year 2022 2021 Assets Cash $ 2,300,000 $ 800,000 Accounts receivable 1,500,000 1,200,000 Inventory 2.800,000 1,700,000 Buildings 11,000,000 11,000,000 Less: Accumulated depreciation (2,000,000) (1.000.000) Total assets $ 15,600,000 $ 13,700.000 Liabilities and Stockholders' Equity Accounts payable $ 1,450,000 $ 1,700.000 Contingent liability 1,500,000 Common stock 8.000.000 8,000,000 Retained earnings 4,650,000 4,000,000 Total liabilities and stockholders' equily $ 15,600,000 $ 13,700,000 The 2021 income statement of Adrian Express reports sales of $17.931,000, cost of goods sold of $1054.000, and net Income of $1660,000. Balance sheet information is provided in the following table, ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Curatat Cash Accounts receivable Inventory Ling-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Common stock Retained earning Total liabilities and stockholders' equity $ 660,000 $ 820,000 1.520.000 1,060,000 1.920,000 1.460,000 4860.000 4,300,000 $8.960,000 $7.640,000 $1,960,000 $1,720,000 2.360,000 2.460,000 1,940,000 1.940.000 2.700.000 1.520.000 $8,960,000 57.540,000 Industry averages for the following four risk ratios are as follows: Average collection period Average days in inventory Current ratio Debt to equity ratio 25 days 60 days 2 to 1 50% Required: 1. Calculate the four risk ratios listed above for Adrian Express in 2021. (Use 365 days in a year Mound your answers to 1 decimal place) days Risk Ratios Average collection period Average days in Inventory Current ratio Debt to equity ratio days to 1 2. Do you think the company is more risky or less risky than the industry average? O More risky O Less risky