Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the balance sheets for federer sports apparel for

The balance sheets for Federer Sports Apparel for 2019 and 2018 are presented below. 1....

80.2K

Verified Solution

Question

Accounting

The balance sheets for Federer Sports Apparel for 2019 and 2018 are presented below.

1. Prepare a vertical analysis of the balance sheet data for 2019 and 2018. Express each amount as a percentage of total assets.

FEDERER SPORTS APPAREL
Balance Sheet
December 31
2019 2018
Amount % Amount %
Assets
Cash $2,200,000 $800,000
Accounts receivable 1,237,500 990,000
Inventory 3,112,500 1,660,000
Buildings 7,150,000 7,150,000
Less: Accumulated depreciation (1,200,000) (600,000)
Total assets $12,500,000 $10,000,000
Liabilities and Stockholders' Equity
Accounts payable $1,512,500 $1,250,000
Contingent liability 850,000 0
Common stock 5,050,000 5,050,000
Retained earnings 5,087,500 3,700,000
Total liabilities and stockholders equity $12,500,000 $10,000,000

2. Prepare a horizontal analysis for 2019 using 2018 as the base year.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students