2A is correct 2B is wrong and that's what I need help with

2 Required Prepare a vertical analysis of both the balance sheets and income statements for Year 4 and Year 3. 20 points * Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Analysis Bal Analysis Inc Sheet Stmt Prepare a vertical analysis of the balance sheets for Year 4 and Year 3. (Percentages may not add exactly due to rounding. Round your percentage answers to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).) ALLENDALE COMPANY Vertical Analysis of Balance Sheets Year 4 Year 3 Amount Percentage of Total Amount Percentage of Total Assets Current assets Cash $ 40,000 6.67% $ 36,000 6.67 % Marketable securities 20,000 3.33 6,000 1.110 Accounts receivable (net) 54,000 9.00 46,000 8.52 Inventories 135,000 22.50 143,000 26.48 Prepaid items 25,000 4.17 10,000 1.85 Total current assets 274,000 45.67 241,000 44.63 Investments 27,000 4.50 20,000 3.70 Plant (net) 270,000 45.00 255,000 47.22 Land 29,000 4.83 24,000 4.44 Total long-term assets 326,000 54.33 299,000 55.37 Total assets 600,000 100.00 540,000 100.00 Liabilities and stockholders' equity Liabilities Current liabilities Notes payable $ 17,000 2.83 $ 6,000 1.11 Accounts payable 113,800 18.97 100,000 8.52 Salaries payable 21,000 3.50 15,000 2.78 Total current liabilities 151,800 25.30 121,000 22.41 Noncurrent liabilities Bonds payable 100,00 16.67 100,000 18.52 Other 32,000 5.33 27,000 5.00 Total noncurrent liabilities 132,000 22.00 127,000 23.52 otal liabilities 283,800 17.30 248,000 45.93 Stockholders' equity Preferred stock (par value $10, 4% cumulative, nonparticipating; 8,000 shares authorized and issued) 80,000 13.33 80,000 14.81 Common stock (no par, 50,000 shares authorized; 10,000 shares issued) 80,000 13.33 80,000 14.81 Retained earnings 156,200 26.03 132,000 24.44 Total stockholders' equity 316,200 52.70 292,000 54.07 Total liabilities & stockholders' equity 600,000 100.00 % 540.000 100.00 %2 Required Prepare a vertical analysis of both the balance sheets and income statements for Year 4 and Year 3. 20 points * Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Analysis Bal Analysis Inc Sheet Stmt Prepare a vertical analysis of an income statements for Year 4 and Year 3. (Percentages may not add exactly due to rounding. Round your percentage answers to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).) ALLENDALE COMPANY Vertical Analysis of Income Statements Year 4 Year 3 Amount Percentage of Total Amount Percentage of Total Revenues Sales (net) 230,000 96.64 (x % 210,000 97.67 % % Other revenues 8,000 3.36 x 5.000 2.33 x Total revenues 238,000 100.00 x 215,000 100.00 x Expenses Cost of goods sold 120,000 50.42 x 103,000 47.91 % Selling, general, and administrative expense 65,000 23.11 x 50,000 23.26 (x Interest expense 8,000 3.36 x 7,200 3.35 x Income tax expense 23,000 9.66 x 22,000 10.23 x Total expenses 206,000 86.55 ( 182,200 84.74 x Net income $ 32,000 13.45 x % 5 32,800 15.26 x %