Question

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

% 2021 Amount % Federal sports apparel Balance sheets Dec-31 2022 Amount Assets Cash 1712500 Accounts receivable 1175000 Inventory 2862500 Buildings 8250000 Less: Accumulated depreciation - 1500000 Total assets 12500000 Liabilities and Stockholders' equity Current liabilities: Accounts payable 1237500 Contingent liability 1200000 Common stock 5100000 Retained earnings 4962500 Total liabilities and stockholders's equity 12500000 13.7% 9.4% 22.9% 66.0% -12.0% 100.0% 600000 780000 1120000 8250000 -750000 10000000 6.0% 7.8% 11.2% 82.5% -7.5% 100.0% 9.9% 9.6% 40.8% 39.7% 100.0% 1300000 0 5100000 3600000 10000000 13.0% 0.0% 51.0% 36.0% 100.0%

Federal sports apparel Balance sheets Dec-31 Yeaar I ncrease (Decrease) 2022 2021 Amount % Assets Cash 1712500 600000 1112500 185.4% Accounts receivable 1175000 780000 395000 50.6% Inventory 2862500 1120000 1742500 155.6% Buildings 8250000 8250000 0.0% Less: Accumulated depreciation - 1500000 -750000 -750000 100.0% Total assets 12500000 10000000 2500000 25.0% Liabilities and Stockholders' equity Accounts payable 1237500 1300000 -62500 -4.8% Contingent liability 1200000 0 1200000 0.0% Common stock 5100000 5100000 0.0% Retained earnings 4962500 3600000 1362500 37.8% Total liabilities and stockholders's equity 12500000 10000000 2500000 25.0%