Question

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.) SPORTS UNLIMITED Balance Sheets For the yearss ended December 31 2021 2020 Amount Amount Assets Current assets: $ Cash 210,600 135,000 Accounts receivable 98,100 52,500 Inventory 88,200 138,000 Prepaid rent 18,000 9,000 Long-term assets: Investment in bonds 104,400 0 Land 176,400 265,500 193,500 Equipment 288,900 Less: Accumulated depreciation (84,600) (43,500) 900,000 $ 750,000 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable 66,600 105,750

Answer 1

SPORTS UNLIMITED Balance Sheets For the years ended December 31 2020 2021 Amount Amount 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 23.4% S 135,000 10.9% S 18.0% 7.0% 18.4% 1.2% $210,600 98,100 S 88,200 $ 18,000 52,500 9.8% S 138,000 2.0% S 9,000 11.6% S 19.6% S 265,500 32.1% S 193,500 9.4% S (43,500) 100.0% S 750,000 100.0% 0.0% 35.4% 25.8% -5.8% $104,400 $176,400 $288,900 S (84,600) $900,000

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 7.4% S 105,750 1.0% S 2.4% S 14.1% 0.6% 2.7% 66,600 S 9,000 S 21,600 4,500 20,250 35.1% S 172,500 23.0% $315,900 30.0% S 270,000 24.1% S 177,000 100.0% S 750,000 100.0% 36.0% 23.6% $270,000 $216,900 $900,000