Required: 1. Prepare a vertical analysis of the balance sheet data for Year 2 and Year 1. 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.) COMPANY A Balance Sheet December 31 Year 2 Amount Amount Assets $ 2,370,000 1,215,000 4,275,000 8,460,000 (1,320,000) $ 15,000,000 S 948,000 972,000 2,280,000 8,460,000 (660,000) $ 12,000,000 Cash Accounts receivable Inventory Buildings Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Contingent liability Common stock Retained earnings Total liabilities and stockholders' equity $ 1,500,000 $ 1,725,000 1,470,000 6,000,000 5,805,000 $ 15,000,000 6,000,000 4,500,000 $ 12,000,000 2. Prepare a horizontal analysis for Year 2 using Year 1 as the base year. (Note: If the percentage increase or decrease cannot be calculated, then leave the cell blank. Decreases should be indicated by a minus sign. Round your percentage answers to 1 decimal place.) COMPANY A Balance Sheet December 31 Year Increase (Decrease) Amount % Year 2 Year 1 Assets 2,370,000 1,215,000 4,275,000 8,460,000 (1,320,000) 15,000,000 $ 948,000 972,000 2,280,000 8,460,000 (660,000) $ 12,000,000 $ Cash Accounts receivable Inventory Buildings Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Contingent liability Common stock Retained earnings Total liabilities and stockholders' equity $ 1.500.000 $ 1,725,000 1,470,000 6,000,000 5,805,000 $ 15,000,000 11 6,000,000 4,500,000 $ 12,000,000