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.) FEDERER SPORTS APPAREL Balance Sheet December 31 2022 Amount % 2021 Amount Assets Cash Accounts receivable $ 2,925,000 1,560,000 3,744,000 13,923,000 (2,652,000) $ 19,500,000 765,000 1.428,000 2,210,000 13,923,000 (1,326,000) $ 17,000,000 Inventory Buildings Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Contingent liability Common stock Retained earnings Total liabilities and stockholders' equity $ 1,887,000 $ 1,794,000 1,891,500 7,293,000 8,521,500 $ 19,500,000 7,293,000 7.820,000 $ 17,000,000 2. Prepare a horizontal analysis for 2022 using 2021 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.) FEDERER SPORTS APPAREL Balance Sheet December 31 Year Increase (Decrease) Amount 2022 2021 Assets Cash Accounts receivable Inventory Buildings Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Contingent ability Common stock Retained earnings Total liabilities and stockholders equity $ 2,925,000 $ 765,000 1,560,000 1,428,000 3,744,000 2,210,000 13,923,000 13,923,000 (2,652,000) (1.326,000) $ 19,500,000 $ 17,000,000 $ 1,794,000 5 1,887,000 1,891,500 7.293,000 7.293,000 8,521,500 7.820,000 $ 19,500,000 $ 17,000,000 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.) FEDERER SPORTS APPAREL Balance Sheet December 31 2022 Amount 2021 Amount Assets 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 $ 2,925,000 1,560,000 3,744,000 13,923,000 (2,652,000) $ 19,500,000 $ 765,000 1,428,000 2,210,000 13,923,000 (1,326,000) $ 17,000,000 $ 1,887,000 $ 1.794,000 1,891,500 7.293,000 8,521,500 $ 19,500,000 7.293.000 7,820,000 $ 17,000,000 2. Prepare a horizontal analysis for 2022 using 2021 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.) Increase (Decrease) Amount % FEDERER SPORTS APPAREL Balance Sheet December 31 Year 2022 2021 Assets Cash $ 2,925,000 $ 765,000 Accounts receivable 1,560,000 1,428,000 Inventory 3,744,000 2,210,000 Buildings 13,823,000 13,923,000 Less: Accumulated depreciation (2,652,000) (1,326,000) Total assets $ 19,500,000 $ 17,000,000 Liabilities and Stockholders' Equity Accounts payable $ 1.794.000 $ 1,887,000 Contingent liability 1,891,500 Common stock 7,293,000 7.293,000 Retained earings 8,521,500 7,820,000 Total liabilities and stockholders' equity $ 19,500,000 $ 17,000,000
