Required information Exercise 12-4B Prepare vertical and horizontal analyses (LO12-1, 12-2) [The following information applies to the questions displayed below.] The balance sheets for Company A for Year 2 and Year 1 are presented below.Exercise 12-48 Part 1 Required: 1. Prepare a vertical analysis of the balance sheet data for Year 2 and Year 1. 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.) COMPANY A Balance Sheet December 31 Year 2 Year 1 Amount Amount Assets Cash $ 2,370,000 937,500 Accounts receivable 1,215,000 1,012,500 Inventory 3,540,000 2,000,000 Buildings 9,225,000 9,225,000 Less: Accumulated depreciation (1,350,000) (675,000) Total assets $ 15,000,000 $ 12,500,000 Liabilities and Stockholders' Equity Accounts payable $ 1,725,000 $ 1,500,000 Contingent liability 1,470,000 Common stock 6,000,000 6,000,000 Retained earnings 5,805,000 5,000,000 Total liabilities and stockholders' equity $ 15,000,000 $ 12,500,000Required information Exercise 12-4B Prepare vertical and horizontal analyses (LO12-1, 12-2) [The following information applies to the questions displayed below.] The balance sheets for Company A for Year 2 and Year 1 are presented below. Exercise 12-48 Part 2 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 Increase (Decrease) Year 2 Year 1 Amount % Assets Cash $ 2,370,000 $ 937,500 Accounts receivable 1,215,000 1,012,500 Inventory 3,540,000 2,000,000 Buildings 9,225,000 9,225,000 Less: Accumulated depreciation (1,350,000 675,000) Total assets $ 15,000,000 $ 12,500,000 Liabilities and Stockholders' Equity Accounts payable $ 1,725,000 $ 1,500,000 Contingent liability 1,470,000 Common stock 6,000,000 6,000,000 Retained earnings 5,805,000 5,000,000 Total liabilities and stockholders' equity $ 15,000,000 $ 12,500,000