2 of 2 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.) Answer is complete but not entirely correct. FEDERER SPORTS APPAREL Balance Sheet December 31 Year Increase (Decrease) 2022 2021 Amount % Assets + Cash Accounts receivable Inventory $2,200,000 $800,000 1,400,000 175.0 1,237,500 990,000 247,500 25.0 3,112,500 1,660,000 142,500X 87.5 Buildings 7,150,000 7,150,000 Less: Accumulated depreciation (1,200,000) (600,000) 600,000 100.0 $ $ $ Total assets Liabilities and Stockholders' Equity Accounts payable Contingent liability 12,500,000 25.0 10,000,000 2,500,000 $1,512,500 $1,250,000 $262,500 21.0 850,000 850,000 Common stock 5,050,000 5,050,000 Retained earnings 5,087,500 3,700,000 1,387,500 37.5 Total liabilities and stockholders' $ $ $ equity 12,500,000 10,000,000 2,500,000 25.0