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 $ 2,370,000 $ 937,500 $ 1,432,500 152.8 Accounts receivable 1,215,000 1,012,500 202,500 16.7 Inventory 3,540,000 2,000,000 1,540,000 43.5 Buildings 9,225,000 9,225,000 0 Less: Accumulated depreciation (1,350,000) (675,000) (675,000) 100.0 Total assets $15,000,000 $ 12,500,000 $ 2,500,000 20.0 Liabilities and Stockholders' Equity Accounts payable $ 1,725,000 $ 1,500,000 $ 225,000 15.0 Contingent liability 1,470,000 1,470,000 0.0 Common stock 6,000,000 6,000,000 0 Retained earnings 5,805,000 5,000,000 805,000 16.1 Total liabilities and stockholders' equity $15,000,000 $12,500,000 $ 2,500,000 20.0 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 $ 2,370,000 $ 937,500 $ 1,432,500 152.8 Accounts receivable 1,215,000 1,012,500 202,500 16.7 Inventory 3,540,000 2,000,000 1,540,000 43.5 Buildings 9,225,000 9,225,000 0 Less: Accumulated depreciation (1,350,000) (675,000) (675,000) 100.0 Total assets $15,000,000 $ 12,500,000 $ 2,500,000 20.0 Liabilities and Stockholders' Equity Accounts payable $ 1,725,000 $ 1,500,000 $ 225,000 15.0 Contingent liability 1,470,000 1,470,000 0.0 Common stock 6,000,000 6,000,000 0 Retained earnings 5,805,000 5,000,000 805,000 16.1 Total liabilities and stockholders' equity $15,000,000 $12,500,000 $ 2,500,000 20.0