• Question: 3.) The balance sheets for Federer Sports Apparel for 2025 and 2024 are presented below. Required: 1. Prepare a vertical analysis of the balance sheet data for 2025 and 2024. 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.)

  3.) The balance sheets for Federer Sports Apparel for 2025 and 2024 are presented below.

  Required:
  1. Prepare a vertical analysis of the balance sheet data for 2025 and 2024. 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.)

  FEDERER SPORTS APPAREL
  Balance Sheet
  December 31
  	2025		2024
  	Amount	%	Amount	%
  Assets
  Cash	$2,200,000		$800,000
  Accounts receivable	1,237,500		990,000
  Inventory	3,112,500		1,660,000
  Buildings	7,150,000		7,150,000
  Less: Accumulated depreciation	(1,200,000)		(600,000)
  Total assets	$12,500,000		$10,000,000
  Liabilities and Stockholders' Equity
  Accounts payable	$1,512,500		$1,250,000
  Contingent liability	850,000		800,000
  Common stock	5,050,000		5,050,000
  Retained earnings	5,087,500		2,900,000
  Total liabilities and stockholders’ equity	$12,500,000		$10,000,000

Answer rating: 100% (QA)

To prepare a vertical analysis of the balance sheet data for 2025 and 2024 well express each am... View the full answer