Question

2. Prepare a horizontal analysis of Sports Unlimited's 2021 balance sheet using 2020 as the base year. (Negative amounts and Decreases should be indicated by a minus sign. Round your percentage answers to 1 decimal place.) SPORTS UNLIMITED Balance Sheets For the years ended December 31 Year 2021 2020 Increase (Decrease) Amount $ $ 210,600 98,100 88,200 18,000 135,000 52,500 138,000 9,000 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable 104,400 176,400 288,900 (84,600) 900,000 0 265,500 193,500 (43,500) 750,000 $ $ $ 66,600 9,000 21,600 105,750 4,500 20,250

Answer 1

SPORTS UNLIMITED Balance Sheets For the years ended December 31 Year Increase (Decrease) 2021 2020Amount % Assets Current assets : Cash $210,600 $135,000$ 75,600 56.0% Accounts receivable $ 98,100 $ 52,500 $ 45,600 86.9% Inventory S 88,200 $138.000 S (49.800) -36.1% Prepaid Rent S 18,000 S 9,000 S 9.000 100.0% Long-term assets : Investment in Bonds $104.400 S - $ 104,400 Land $176,400 $265,500S (89.100) -33.6% Equipment $288.900 $193,500 $ 95,400 49.3%) Less: Accumulated depreciation $ (84.600) S (43,500) S (41.100 94.5% Total Assets $900.000 $750,000 $ 150.000 20.0% Liabilities and Stockholders' Equity

$ 66,600 $ 105,750 S $ 9,000 S 4,500 S $ 21,600 $ 20,250 $ (39,150) -37.0% 4,500 100.0% 1,350 6.7% Current Liabilities: Accounts Payable Interest payable Income Tax payable Loang-term liabilities : Notes Payable Stockholders' equity : Common stock Retained earnings Total liabilities and Stockholders' equity $315,900 $172,500S 143,400 83.1% $270,000 $270,000 $ $216,900 $177,000 S $900,000 $750,000 $ 39.900 150,000 0.0% 22.5% 20.0%