\begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ Answer is complete and correct. } \\ \hline \multicolumn{6}{|c|}{ FEDERER SPORTS APPAREL } \\ \hline \multicolumn{6}{|c|}{ Income Statement } \\ \hline \multicolumn{6}{|c|}{ For the Years Ended December 31} \\ \hline & \multicolumn{3}{|c|}{2025} & \multicolumn{2}{|c|}{2024} \\ \hline & & Amount & % & Amount & % \\ \hline Net sales & $ & 19,400,000 & 100.0$ & $16,100,000 & 100.0 \\ \hline Cost of goods sold & & 12,920,400 & 66.6 & 7,373,800 & 45.8 \\ \hline Gross profit & & 6,479,600 & 33.4 & 8,726,200 & 54.2 \\ \hline Operating expenses & & 1,765,400 & 9.1 & 1,336,300 & 8.3 \\ \hline Depreciation expense & & 1,144,600 & 5.9 & 1,143,100 & 7.1 \\ \hline Inventory write-down & & 329,800 & 1.7 & 0 & 0.0 \\ \hline Loss (litigation) & & 1,668,400 & 8.6 & 289,800 & 1.82 \\ \hline Income before tax & & 1,571,400 & 8.1 & 5,957,000 & 37.0 \\ \hline Income tax expense & & 582,000 & 3.0 & 2,173,500 & 13.5 \\ \hline Net income & $ & 989,400 & 5.1$ & 3,783,500 & 23.5 \\ \hline \end{tabular} Required information Exercise 12-4 (Algo) Prepare vertical and horizontal analyses (LO12-1, 12-2) [The following information applies to the questions displayed below.] The balance sheets for Federer Sports Apparel for 2025 and 2024 are presented below. Exercise 12-4 (Algo) Part 1 Required: 1. Prepare a vertical analysis of the balance sheet data for 2025 and 2024. 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.) December 31 \begin{tabular}{|c|c|c|c|c|c|c|} \hline & \multicolumn{3}{|c|}{2025} & \multicolumn{3}{|c|}{2024} \\ \hline & & Amount & % & & Amount & % \\ \hline \multicolumn{7}{|l|}{ Assets } \\ \hline Cash & $ & 2,370,000 & & $ & 948,000 & \\ \hline Accounts receivable & & 1,215,000 & & & 972,000 & \\ \hline Inventory & & 4,275,000 & & & 2,280,000 & \\ \hline Buildings & & 8,460,000 & & & 8,460,000 & \\ \hline Less: Accumulated depreciation & & (1,320,000) & & & (660,000) & \\ \hline Total assets & & 15,000,000 & & & 12,000,000 & \\ \hline \multicolumn{7}{|l|}{ Liabilities and Stockholders' Equity } \\ \hline Accounts payable & $ & 1,725,000 & & $ & 1,500,000 & \\ \hline Contingent liability & & 1,470,000 & & & 1,010,000 & \\ \hline Common stock & & 6,000,000 & & & 6,000,000 & \\ \hline Retained earnings & & 5,805,000 & & & 3,490,000 & \\ \hline Total liabilities and stockholders' equity & $ & 15,000,000 & & $ & 12,000,000 & \\ \hline \end{tabular}