The following information for Runner Furniture, a retail furniture and design firm Runner Furniture Balance Sheets December 31 2021 December 31 2020 $40,974 $51.992 566,807 448,431 5.080.776 4,815,759 81.948 77,988 5.770.505 5,394,170 1,058,495 1,104,830 $6,829,000 $6,499,000 Assets Current assets: Cash Accounts receivable Inventory Prepaid expenses Total current assets Building and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Bank loan payable Other accrued payables Total current liabilities Long-term debt Total liabilities Stockholders' equity: Common stock Retained earnings $600,952 $623,904 676,071 623,904 211.699 311,952 1.488,722 1,559,760 1,741,395 1.813.221 3.230.117 3,372,981 1,365,800 1,365,800 2,233,083 1,760,219 Total stockholders' equity 3,598,883 3,126,019 Total liabilities and stockholders' equity $6,829,000 $6,499,000 Runner Furniture Statement of Earnings Year Ended December 31, 2021 Year Ended December 31, 2020 Net sales $5,516,000 $5,243,000 Cost of goods sold 2,835,224 2,626,743 Gross margin 2,680,776 2,616,257 Operating expenses: Selling expenses 501,956 629,160 General and administrative expenses 838,432 786,450 Total operating expenses 1,340,388 1,415,610 Operating income 1,340,388 1,200,647 Interest expense 137,900 157,290 Income before taxes 1,202,488 1,043,357 Income taxes 240,498 208,671 Net income $961,990 $834,686 Performa vertical analysis of the balance sheets for Runner Furniture (Round answers to 1.2 Vertical Analysis Runner Furniture Balance Sheets December 31 December 31 2020 2021 Assets Current assets Cash $40.974 $51.992 Accounts receivable 566,807 X 448,431 Inventory 5.080,776 4,515.759 Prepaid expenses 81.948 X 77.988 Total current assets 5.770.505 5,394,170 Building and equipment.net 1,058,495 X 1,104,830 Total assets $6,829,000 56,499.000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $600,952 X $623.904 Bank loan payable 676071 623 904 Other accrued payables 211.699 311.952 Total current liabilities 1.488,722 1.559,750 Long-term debt 1,741,395 3.813.221 Total liabilities 3.230.117 3.372.981 Stockholders' equity Common stock 1.365.000 1.365.000 Retained earnings 2.233.083 1760.219 Total stockholders' equity 3.598.883 3,126,019 Total liabilities and stockholders' equity $6,829,000 $6,499,000 Perform a vertical analysis of the income statements for Runner Furniture. (Round answers to 1 decimal place, eg.5.2%) Runner Furniture Statement of Earnings Year Ended December 31. 2021 Year Ended December 31. 2020 Net sales $5,516,000 %6 $5,243,000 Cost of goods sold 2,835,224 % 2,626,743 Gross margin 2,680,776 %6 2,616,257 Operating expenses: Selling expenses 501,956 96 629.160 General and administrative expenses 838,432 %6 786,450 Total operating expenses 1,340,388 % 1.415,610 Operating income 1,340,388 % 1.200,647 Interest expense 137.900 % 157.290 Income before taxes 1.202,488 % 1.043,357 Income taxes 240,498 96 208,671 Net Income $961.990 % $834,686
