December 31 2020 Sweetwater Furniture Balance Sheets December 31 2021 Assets Current assets: Cash $41,274 Accounts receivable 577.878 Inventory 5,049,553 Prepaid expenses 82.554 Total current assets 5.751,259 Building and equipment, net 1.127,741 Total assets $6,879.000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $605,352 Bank loan payable 674 142 Other accrued payables 213.249 Total current liabilities 1,492.743 $51,904 447,672 4,872,488 77,856 5,449.920 1,038,080 $6,488.000 $622,848 622,848 311424 1.557. 120 Question 2 of 6 1,492,743 1.719,750 3,212,493 1,557,120 1.784,200 3,341,320 Total current Trabilities Long-term debt Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 1,355,163 2,311,344 3,666,507 $6,879,000 1,355,163 1,791,517 3,146,680 $6,488,000 Sweetwater Furniture Statement of Earnings Year Ended December 31, 2021 $5,524,000 2.822.764 2.701.236 Year Ended December 31, 2020 $5.297.000 2,606,124 2,690,876 Net sales Cost of goods sold Gross margin Operating expenses: Selling expenses 497.160 625,046 Question 2 of 6 -/1 E Perform a vertical analysis of the balance sheets for Sweetwater Furniture. (Round answers to 1 decimal place, as 5.2%) Vertical Analysis Sweetwater Furniture Balance Sheets December 31, 2021 December 31. 2020 Assets Current assets: Cash $41.274 2 $51.904 577,878 96 Accounts receivable 447,672 % 5.049.553 4,872,488 Inventory Prepaid expenses 98 77,856 82.554 36 5.751.259 5.449.920 Total current assets 1,038,080 1.127,741 Building and equipment, net $6,488,000 $6.879.000 Total assets estion 2 of 6 Total assets $6,879,000 $6,488,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Bank loan payable $605,352 % $622,848 674.142 % 622,848 213,249 Other accrued payables se 311,424 1.492,743 % 1,557,120 Total current liabilities 1.719.750 % 1.784,200 Long-term debt 96 3.212.493 3,341.320 Total liabilities Stockholders'equity: Common stock Retained earnings %% 1.355,163 1,355,163 36 1,791.517 2.311.344 % 3,666,507 3,146,680 Total stockholders equity Question 2 of 6 -/1 Total liabilities and stockholders' equity $6,879,000 % $6,488,000 e Textbook and Media Perform a vertical analysis of the income statements for Sweetwater Furniture. (Round answers to 1 decimal place, 3.5.2%) Sweetwater Furniture Statement of Earnings Year Ended December Year Ended December 31 2021 31. 2020 $5.297,000 $5.524.000 Net sales 96 2.606.124 2.822.764 Cost of goods sold JUJU SU SW Water Furniture. (Round answers to 1 decimal place, g. 52%) Sweetwater Furniture Statement of Earnings Year Ended December 31. 2021 $5,524,000 Year Ended December 31, 2020 %6 $5.297,000 Net sales Cost of goods sold 2,822,764 96 2,606,124 56 2.701.236 2,690,876 Gross margin Operating expenses Selling expenses 96 625.046 497.160 % 834,124 783.956 General and administrative expenses 90 1.409,002 1.331.284 Total operating expenses i e ch Question 2 of 6 -/1 TIP General and administrative expenses 834,124 % 783,956 Total operating expenses 1.331,284 % 1.409.002 Operating income 1,369.952 % 1,281,874 Interest expense 138,100 158,910 Income before taxes 1,231.852 %6 1.122,964 246,370 96 Income taxes 224,593 $985,482 % Net income $898,371 e Textbook and Media
