The balance sheet for The Athletic Attic for 2012 and 2011 is provided below.

Required:
1. Prepare a vertical analysis of The Athletic Attic's 2012 and 2011 balance sheets. Express each amount as a percentage of total assets for that year.
2. Prepare a horizontal analysis of The Athletic Attic's 2012 balance sheet using 2011 as the base year.

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THE ATHLETIC ATTIC Balance Sheet December 31 2012 2011 Assets Current assets: Cash Accounts receivable Inventory Supplies $ 154,000 740,000 1,355,000 100,000 $ 204,000 760,000 1,025,000 75,000 Long-term assets Equipment Less: Accumulated depreciation 1,100,000 (400,000) $3,049,000 1,100,000 200,000) $2,964,000 Total assets Liabilities and Stockholders' Equit Current liabilities: Accounts payable Interest payable $ 105,000 35,000 500,000 $ 81,000 4,000 30,000 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock 500,000 600,000 1,809,000 $3,049,000 600,000 1,749,000 $2,964,000 Retained earnings Total liabilities and stockholders' equity