The balance sheet for Federer Sports Apparel for 2013 and 2012 is presented below.

Required:
1. Prepare a vertical analysis of the balance sheet data for 2013 and 2012. Express each amount as a percentage of total assets.
2. Prepare a horizontal analysis for 2013 using 2012 as the base year.

Transcribed Image Text:

FEDERER SPORTS APPAREL Balance Sheet December 31 2013 2012 Assets Cash Accounts receivable Inventory Buildings Less: Accumulated depreciation $ 2,300,000 1,500,000 2,800,000 11,000,000 (2,000,000) $15,600,000 $ 800,000 1,200,000 1,700,000 11,000,000 (1,000,000) $13,700,000 Total assets Liabilities and Stockholders' Equit Accounts payable Contingent liability Common stock Retained earnings $ 1,450,000 1,500,000 8,000,000 4,650,000 $15,600,000 $ 1,700,000 8,000,000 4,000,000 $13,700,000 Total liabilities and stockholders' equity