Question

Required: 1. Prepare a vertical analysis of the balance sheet data for 2022 and 2021. Express each amount as a percentag- total assets. (Amounts to be deducted should be indicated by a minus sign. Round your answers to 1 decimal place.) Assets Cash Accounts receivable Inventory FEDERER SPORTS APPAREL Balance Sheet December 31 S Amount 2022 2.300.000 1.500.000 2.800.000 % $ Amount 2021 800.000 1.200.000 1.700.000​

Answer 1

To prepare a vertical analysis of the balance sheet data for 2022 and 2021, calculate the percentages of each amount as a percentage of total assets. Use the formula: Percentage = (Amount / Total Assets) * 100. Apply this formula to each asset category and round the answers to 1 decimal place.

Step-by-step explanation:

To prepare a vertical analysis of the balance sheet data for 2022 and 2021, we need to express each amount as a percentage of total assets. The formula to calculate the percentage is:

Percentage = (Amount / Total Assets) * 100

Let's calculate the percentages for the given data:

1. Cash:
   2022: (2,300,000 / 6,600,000) * 100 = 34.8%
2. Accounts Receivable:
   2022: (1,500,000 / 6,600,000) * 100 = 22.7%
3. Inventory:
   2022: (2,800,000 / 6,600,000) * 100 = 42.4%

Similarly, calculate the percentages for the data of 2021 using the same formula and rounding the answers to 1 decimal place.