Question: Required: Prepare a horizontal analysis for 2025 using 2024 as the base year. Prepare vertical and horizontal analyses (LO12-1, 12-2) E12-4 The balance sheets

Required: Prepare a horizontal analysis for 2025 using 2024 as the base

Required: Prepare a horizontal analysis for 2025 using 2024 as the base year. Prepare vertical and horizontal analyses (LO12-1, 12-2) E12-4 The balance sheets for Federer Sports Apparel for 2025 and 2024 are presented below. FEDERER SPORTS APPAREL Balance Sheets Assets Cash Accounts receivable Inventory Buildings Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Contingent liability Common stock Retained earnings Total liabilities and stockholders' equity DECEMBER 31 2025 2024 $ 2.300.000 1,500,000 2,800,000 11,000,000 (2,000,000) $ 15,600,000 $ 800,000 2,200,000 1,700,000 11,000,000 (1,000,000) $ 14,700,000 $1,450,000 1,500,000 $1,700,000 1,000,000 8,000,000 F 8,000,000 4,650,000 4,000,000 $ 15,600,000 $ 14,700,000 Required: 1. Prepare a vertical analysis of the balance sheet data for 2025 and 2024. Express each amount as a percentage of total assets. 2. Prepare a horizontal analysis for 2025 using 2024 as the base year.

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