Can you explain the process please?

The balance sheets for Company A for Year 2 and Year 1 are presented below. 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.) COMPANY A Balance Sheet December 31 Year Year 2 Increase (Decrease) Amount Year 1 Assets Cash Accounts receivable Inventory Buildings Lone: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Contingent liability Common stock Retained earnings Total liabities and stockholders' equity $ 2,431,000 $ 754.000 1,581,000 1,305,000 3,128,000 1,595,000 11,832,000 11,832,000 (1,972,000) (986,000) $ 17,000,000 $14,500,000 $ 1,496,000 $1,856,000 1,360,000 7,888,000 7.888,000 6.256,000 4,756,000 $ 17,000,000 $ 14,500,000