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The following balance sheets for The Sports Shack are provided.

Required:

1. Prepare a vertical analysis of The Sports Shack's 2021 and 2020 balance sheets. Express each amount as a percentage of total assets for that year.
2. Prepare a horizontal analysis of The Sports Shack's 2021 balance sheet using 2020 as the base year.

Prepare a vertical analysis of The Sports Shack's 2021 and 2020 balance sheets. Express each amount as a percentage of total assets for that year. (Amounts to be deducted should be indicated by a minus sign. Round your percentage answers to 1 decimal place.)

The Sports Shack Balance Sheets December 31 2021 2020 Amount % Amount % Assets Current assets: Cash $218,000 $196,000 Accounts receivable 680,000 880,000 Inventory 1,250,000 1,100,000 Supplies 90,000 65,000 Long-term assets: Equipment 1,200,000 900,000 Less: Accumulated depreciation (350,000) (250,000) Total assets $3,088,000 $2,891,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $65,000 $55,000 Interest payable 4,000 6,000 Income tax payable 40,000 30,000 Long-term liabilities: Notes payable 400,000 300,000 Stockholders' equity: Common stock 900,000 900,000 Retained earnings 1,679,000 1,600,000 Total liabilities and stockholders equity $3,088,000 $2,891,000

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