The balance sheet for Virtual Gaming Systems for 2012 and 2011 is provided below.

Required:
1. Prepare a vertical analysis of Virtual Gaming Systems' 2012 and 2011 balance sheets. Express each amount as a percentage of total assets for that year.
2. Prepare a horizontal analysis of Virtual Gaming Systems' 2012 balance sheet using 2011 as the base year.
Required:
1. Complete the "Amount" and "%" columns to be used in a horizontal analysis of Sports Emporium's income statement.
2. Discuss the major fluctuations in income statement items during the year.

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VIRTUAL GAMING SYSTEMS Balance Sheet For the years ended December 31, 2012 and 2011 2012 2011 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent $186,000 81,000 105,000 12,000 $144,000 60,000 135,000 6,000 Long-term assets Investment in bonds Land Equipment 105,000 210,000 ZAMXX) (69,000) C) 240,000 210,000 (42,000) 753,000 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable $ 66,000 6,000 15,000 s 81,000 3,000 14,000 Long-term liabilities Notes payable 285,000 225,000 300,000 $753,000 Common stock Retained earnings 300,000 Total liabilities and stockholders' equity