The balance sheets for Federer Sports Apparel for 2016 and 2015 are presented below

Required:
1. Prepare a vertical analysis of the balance sheet data for 2016 and 2015. Express each amount as a percentage of total assets.
2. Prepare a horizontal analysis for 2016 using 2015 as the baseyear.

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FEDERER SPORTS APPAREL Balance Sheets December 31 2016 2015 Assets Cash Accounts receivable Inventory Buildings Less: Accumulated depreciation 2,300,000 1,500,000 2,800,000 1,000,000 (2,000,000) $15,600,000 S 800,000 1,200,000 1,700,000 11,000,000 (1,000,000) $13,700,000 Total assets Liabilities and Stockholders' Equit Accounts payable Contingent liability Common stock Retained earnings $ 1,450,000 1,500,000 8,000,000 4,650,000 $15,600,000 S 1,700,000 8,000,000 4,000,000 S13,700,000 Total liabilities and stockholders' equity