Question

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

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.) 

 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.) 

Answer 1

	2022		2021
	Amount	%	Amount	%
Assets
Cash	$    23,10,000	15.40%	$        8,40,000	7.00%
Accounts Receivable	$    13,05,000	8.70%	$      10,44,000	8.70%
Inventory	$    40,05,000	26.70%	$      21,36,000	17.80%
Building	$    85,80,000	57.20%	$      85,80,000	71.50%
Less : Accumulated Depreciation	$   -12,00,000	-8.00%	$       -6,00,000	-5.00%
Total Assets	$ 1,50,00,000	100.00%	$   1,20,00,000	100.00%
Liabilities & Stockholder's Equity
Accounts Payable	$    17,25,000	11.50%	$      13,80,000	11.50%
Contingent Liability	$    12,30,000	8.20%	$                    -	0.00%
Common Stock	$    49,20,000	32.80%	$      49,20,000	41.00%
Retained Earnings	$    71,25,000	47.50%	$      57,00,000	47.50%
Total Liabilities & Stockholder's Equity	$ 1,50,00,000	100.00%	$   1,20,00,000	100.00%

			Increase (Decrease)
	2022	2021	Amount	%
Assets
Cash	$    23,10,000	$        8,40,000	$      14,70,000	175.00%
Accounts Receivable	$    13,05,000	$      10,44,000	$        2,61,000	25.00%
Inventory	$    40,05,000	$      21,36,000	$      18,69,000	87.50%
Building	$    85,80,000	$      85,80,000	$                    -	0.00%
Less : Accumulated Depreciation	$   -12,00,000	$       -6,00,000	$       -6,00,000	100.00%
Total Assets	$ 1,50,00,000	$   1,20,00,000	$      30,00,000	25.00%
Liabilities & Stockholder's Equity
Accounts Payable	$    17,25,000	$      13,80,000	$        3,45,000	25.00%
Contingent Liability	$    12,30,000	$                    -	$      12,30,000
Common Stock	$    49,20,000	$      49,20,000	$                    -	0.00%
Retained Earnings	$    71,25,000	$      57,00,000	$      14,25,000	25.00%
Total Liabilities & Stockholder's Equity	$ 1,50,00,000	$   1,20,00,000	$      30,00,000	25.00%