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. Exercise 12-4 (Algo) Part 2 2. Prepare a horizontal analysis for 2025 using 2024 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.)

FEDERER SPORTS APPAREL
Balance Sheet
December 31
	Year		Increase (Decrease)
	2025	2024	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