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Required: 1. Prepare a vertical analysis of Sports Unlimited's 2021 and 2020 balance sheets. Express each amount as a percentage of total assets for that

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Required: 1. Prepare a vertical analysis of Sports Unlimited's 2021 and 2020 balance sheets. Express each amount as a percentage of total assets for that year. (Amounts to be deducted should be indicated by a minus sign. Round your percentage answers to 1 decimal place.) SPORTS UNLIMITED Balance Shents For the years ended December 31 2021 2020 Amount % Amount Assets $ $ 103,500 46,800 44,550 7.200 70,400 32,000 71 200 3,600 54,900 117.450 106,200 (30,600) 450,000 141,600 102,000 (20,800) 400,000 $ $ Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $ $ 30,150 7,200 12,150 46,800 3,600 10,000 138,150 127,600 144,000 118,350 450,000 144,000 68,000 400,000 $ $ 2. Prepare a horizontal analysis of Sports Unlimited's 2021 balance sheet using 2020 as the base year. (Negative amounts and Decreases should be indicated by a minus sign. Round your percentage answers to 1 decimal place.) Increase (Decrease) Amount % SPORTS UNLIMITED Balance Sheets For the years onded December 31 Year 2021 2020 Assets Current assets Cash $ 103,500 $ 70,400 Accounts receivable 46,800 32,000 Inventory 44,550 71,200 Prepaid rent 7,200 3,600 Long-term assets: Investment in bonds 54,900 0 Land 117,450 141,600 Equipment 106,200 102,000 Less: Accumulated depreciation (30,600) (20,800) Total assets $ 450,000 $ 400,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 30,150 $ 46,800 Interest payable 7.200 3,600 Income tax payable 12.150 10,000 Long-term liabilities: Notes payable 138,150 127,600 Stockholders' equity Common stock 144,000 144,000 Retained earnings 118,350 68,000 Total liabilities and stockholders' equity $ 450,000 $ 400,000

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