2. Prepare a horizontal analysis for Year 2 using Year 1 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.)

Help needed only highlighted area.

COMPANY A Balance Sheet December 31 Year Increase (Decrease) Year 2 Year 1 Amount % Assets Cash $1,692,000 238.4 $500,000 $1,192,00 0 800,000 364,000 Accounts receivable 1,164,000 45.5 Inventory 2,424,000 1,200,000 1,224,000 102.0 Buildings 8,280,000 8,280,000 Less: Accumulated depreciation (1,560,000) (780,000)| (780,000) 100.0 Total assets 20.0 $12,000,00 $10,000,00 $2,000,00 0 0 0 Liabilities and Stockholders' Equity Accounts payable $1,128,000 $1,000,000 $128,000 Contingent liability 1,176,000 1,176,000 Common stock 5,520,000 5,520,000 Retained earnings 4,176,000 3,480,000 696,000 20.0 20.0 Total liabilities and stockholders' equity $12,000,00 $10,000,00 $2,000,00 0 0 0