Question

Required information [The following information applies to the questions displayed below.] The balance sheets for Federer Sports Apparel for 2022 and 2021 are presented below. 2. Prepare a horizontal analysis for 2022 using 2021 as the base year. (Note: If the percentage increase or decrease cannot be calculated, then leave the cell blank. Decreases should be indicated by a minus sign. Round your percentage answers to 1 decimal place.) FEDERER SPORTS APPAREL Balance Sheet December 31 Year 2022 2021 Increase (Decrease) Amount % Assets $ 2,200,000 1,237,500 3,112,500 7,150,000 (1,200,000) $ 12,500,000 $ 800,000 990,000 1,660,000 7,150,000 (600,000) $ 10,000,000 Cash Accounts receivable Inventory Buildings Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Contingent liability Common stock Retained earnings Total liabilities and stockholders' equity $ 1,250,000 $ 1,512,500 850,000 5,050,000 5,087,500 $ 12,500,000 5,050,000 3,700,000 $ 10,000,000

Answer 1

Increase (Decrease Amount % 1400000 247500 1452500 Comparative Balance Sheet December 31, Years 2022 2021 Assets Cash 2200000 800000 Accounts Receivable 1237500 990000 Invenotry 3112500 1660000 Buildings 7150000 7150000 Less: Accumulated Depreciation -1200000 -600000 Total Assets 12500000 10000000 Liabilities and Stockholders' Equity Accounts Payable 1512500 1250000 Contingent Liability 850000 Common Stock 5050000 5050000 Retained earnings 5087500 3700000 Total liabilites and Stockholders' equity | 12500000 10000000 175.0% 25.0% 87.5% 0.0% 100.0% 25.0% -600000 2500000 21.0% 262500 850000 1387500 2500000 0.0% 37.5% 20.0% Increase ( Decrease )= Percent = Current Year - Prior year Increase (Decrease) / Prior Year

2022 2021 difference Calculation of Difference Assets Cash Accounts Receivable Invenotry Buildings Less: Accumulated Depreciation Total Assets Liabilities and Stockholders' Equity Accounts Payable Contingent Liability Common Stock Retained earnings Total liabilites and Stockholders' equity 2200000- 800000 1400000 1237500 - 990000 247500 3112500 - 1660000 1452500 7150000 - 7150000 -1200000-1 -600000 -600000 12500000 - 10000000 2500000 262500 850000 1512500 - 1250000 850000 - 0 5050000 - 5050000 5087500 - 3700000 12500000 - 10000000 1387500 2500000