Question 25 The balance sheet data below for Randolph lance sheet data below for Randolph Company for two recent years Assets Year 2 Current assets Plant assets Total assets $ 445 680 $1,125 Year 1 $280 520 $800 Liabilities & Stockholders' Equity Current liabilities Long-term debt Common stock Retained earnings Total liabilities and stockholders' $ 285 255 325 260 $1,125 $120 160 320 200 $800 equity (a)Using horizontal analysis, show the percentage change for each balance sheet item using Year 1 as a base year. (b)Using vertical analysis, prepare a comparative balance sheet. Round percentages to one decimal place. (a) Using horizontal analysis Assets Current assets Plant assets Total assets Year 2 $ 445 680 $1.125 Year 1 $280 520 $800 Increase Decrease) Amount Percent ( 166.00 58.9% $160.00 30.8%. 3 2570040.6% Liabilities & Stockholders' Equity Current liabilities Long-term debt Common stock Retained earnings Total liabilities and stockholders' equity $ 285 255 325 260 $1.125 $120 160 320 200 $800 3165 0 95.00 135.00 $ 60.00 325.00 132.57. 59.4% 1.6%. 30.0%. 40.67 (b) Using vertical analysis Year 1 Year 2 Percent T35.00 T65.00 Amount Year 2 Year 2 Percent Amount 3967 $280 16. 520 Assets Current assets Plant assets Total assets IS 445 680 $1.125 000 Liabilities & Stockholders' Equity Current liabilities Long-term debt Common stock Retained earnings Total liabilities and stockholders' equity $ 285 25 $120 255 223 y 160 325 20.9 320 260211200 _$1.125 100.04 $800 15.02 20.0% 40.07 25.07 (c) Prepare a comparative income statement, with vertical analysis Bluestem Company Comparative Income Statement For Years Ended December 31, Year 2 and Year 1 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax Income tax Net income Year 2 Amount Percent $800,000 350.000 $450.000 $150,000 37,000 $187.000 $263,000 40,000 $223,000 Year 1 Amount Percent $700,000 320,000 $380.000 $110,000 20,000 $130.000 $250,000 32.000 $218.000