The balance sheets for Federer Sports Apparel for 2022 and 2021 are presented below. Required:
Prepare a vertical analysis of the balance sheet data for 2022 and 2021. Express each amount as a percentage of total assets.
FEDERER SPORTS APPAREL
Balance Sheet
December 31
2022 2021
Amount % Amount %
Assets
Cash 2,756,500 896.000
Accounts receivable 1,720,500 1,232,000
Inventory 3,367,000 2,032,000
Buildings 13,024,000 13,024,000
Less: Accumulated depreciation (2,368,000) (1,184,000)
Total assets $ 18,500,000 $ 16,000,000
Liabilities and Stockholders' Equity
Accounts payable $ 1,591,000 $ 1,792,000
Contingent liability 1,850,000
Common stock 7,696,000 7,696,000
Retained earnings 7,363,000 6,512,000
Total liabilities and
stockholders' equity $ 18,500,000 $ 16,000,000