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.

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