Question

Check my work Required information (The following information applies to the questions displayed below) Part 1 of 2 The balance sheets for Sports Unlimited for 2021 and 2020 are provided below. Book Required: 1. Prepare a vertical analysis of Sports Unlimited's 2021 and 2020 balance sheets. Express each amount as a percentage of total assets for that year. (Amounts to be deducted should be indicated by a minus sign. Round your percentage answers to 1 decimal place.) References SPORTS UNLIMITED Balance Sheets For the years ended December 31 2021 Amount % 2020 Amount Assets Current assets Cash $ 188,800 $ 135,800

Answer 1

SPORTS- UNLIMITED Balance Sheets or the years ended December 31 2021 2020 Amount % Amount % Assets Current assets: cash $ 188,800 23.6 %$ 135,800 19,4 % Accounts Receivable $76,000 9.5% $ 51,000 7.4% Inventory $72,000 9.0% $133,700 19.1% Prepaid hent $ 11, 200 1.4% $ 5,600 0.8 % long term assets : Investment in bonds $99,200 12.4% 0 % land $200,800 25.1% $215, 600 30.8 % Equipment $ 194,400 24.3% $ 192,500 2715% less: Accumulated depreciation & (42,400) (5.3% $(35,ooo) 15 % Total assets $800,ooo 100.0% $ 700,000 100.02 Liabilities and stockholders' Equity Current liabilities: Accounts Payable $51,200 6.4 % $89,600 12.8% Interest payable Income tax payable long term liabilities: - Notes Payable Stockholders' equity : Common stock - Retained earnings $216,000 27.0 % $182,ooo! Total liabilities & Mockholders' equity $ 800,000 100.07 $ 700,00 4 $22,400 2.8 % $ 11, 200 is 16,000 210 % $ 13,300 1.6 1.9 % % $ 270,400 33.87 $179,900 25.7% & 224.000 28.07.&224,000 32.0 of 000 27.0% $ 182,000 26.0 % pood 100.0% $700,000 100.0 %

Increase (Decrease) eta SPORTS UNLIMITED Balance sheets for the years ended December 31 Year 2021 2020 Amount Asets Current Auets : Cash $188,800 $135,800 $ 53,000 390% Accounts Receivable $ 76,000 & 51,800 $ 24,200 46. Inventory $72,000 $133,700 $(61,700) (46.2% Rent $ 11, 200 & 5,600 $5,600 100.0% long term assets: Investment in bonds $99,200 O $99,200 o land $ 200,800 $ 215,600 $(14,800) 16:9) Equipment $194,400 $ 192,500 $1,900 1.0% Less: Accumulated depreciation $(42,400) & (35,000) & (7,400) 21.1% Total assets $800,000 $700,000 $100,000 14.3% liabilities and stockholders Equity Current liabilities: accounts payable $51,200 $ 89,600 $ (38,400) 142.907 Interest Payable $22,400 & 11, 200 $ 11, 200 100.07 Income tax payable $16,000 $13,300 $2,700 2012 long term liabilities: Notes Payable $270,400 $179,900 $90,500 50.3% Istockholders' equity: common stock $ 224,000 $224,000 o T Retained earnings $216,000 $182,000 $34,000 18.77 u liabilities & stockholders $800,000 $700,000 $100,000 equity 14.3%

Calculation: Vertical Analysis : 1) Percent = Item Amount 4100 Total Assets Cash 2021 = $ 180,000 x 100 $800,ooo = 23.6% Cash 2020 = $135,000 x 100 = 19.4% $ 700,000 Accounts Payable 2021 = $.51,200 $ 800,000 x 100 = 6.4% Accounts Payable 2020 = $89,600 $700,ooo x 100 = 12.8% 2, Horizontal Analysis : Increase (Decrease) = Item Amount 2021 - Item Amount 2020 Cash = $ 188,000 - $135,800 = $53,000 Accounts Payable = $51,200 - $89,600 = $(38,400) percent & Increase (Decrease) = (Increase (Decrease) Amount 5 Base Amount 2020) X100 cash = ($53,000 & $135,800) x 100 = 39.0% Accounts payable = $(38,400) $89,600 -xloo = (42.9%