Required information Exercise 12-4 (Algo) Prepare vertical and horizontal analyses (LO12-1, 12-2) Skip to question [The following information applies to the questions displayed below.] The balance sheets for Federer Sports Apparel for 2025 and 2024 are presented below.

FEDERER SPORTS APPAREL
Balance Sheet
December 31
	2025		2024
	Amount	%	Amount	%
Assets
Cash	$2,430,000		$759,500
Accounts receivable	1,530,000		1,193,500
Inventory	3,438,000		1,829,000
Buildings	12,834,000		12,834,000
Less: Accumulated depreciation	(2,232,000)		(1,116,000)
Total assets	$18,000,000		$15,500,000
Liabilities and Stockholders' Equity
Accounts payable	$1,602,000		$1,968,500
Contingent liability	1,764,000		1,200,000
Common stock	7,254,000		7,254,000
Retained earnings	7,380,000		5,077,500
Total liabilities and stockholders equity	$18,000,000		$15,500,000