Required: 1. Prepare a vertical analysis of the balance sheet data for 2022 and 2021. 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.)

The balance sheets for Federer Sports Apparel for 2022 and 2021 are presented below.

2. Prepare a horizontal analysis for 2022 using 2021 as the base year. (Decreases should be indicated by a minus sign. Round your percentage answers to 1 decimal place.)

Required information [The following information applies to the questions displayed below.] The balance sheets for Federer Sports Apparel for 2022 and 2021 are presented below. FEDERER SPORTS APPAREL Balance Sheet December 31 2022 2021 Amount % Amount Assets $ 840,000 Cash 2,310,000 Accounts receivable 1,305,000 1,044,000 Inventory 4,005,000 2,136,000 Buildings 8,580,000 8,580,000 Less: Accumulated depreciation (1,200,000) (600,000) 15,000,000 12,000,000 Total assets Liabilities and Stockholders' Equity Accounts payable 1,725,000 $ 1,380,000 Contingent liability 1,230,000 4,920,000 Common stock 4,920,000 Retained earnings 5,700,000 7,125,000 15,000,000 12,000,000 Total liabilities and stockholders' equity FEDERER SPORTS APPAREL Balance Sheet December 31 Increase (Decrease) Year 2021 2022 Amount Assets $ Cash 2,310,000 840,000 Accounts receivable 1,305,000 1,044,000 Inventory 4,005,000 2,136,000 Buildings 8,580,000 8,580,000 Less: Accumulated depreciation (1,200,000) (600,000) 15,000,000 12,000,000 Total assets Liabilities and Stockholders' Equity Accounts payable 1,725,000 S Contingent liability 1,230,000 Common stock 4,920,000 4,920,000 Retained earnings 7,125,000 5,700,000 $ 12,000,000 $15,000,000 Total liabilities and stockholders' equity