Required 1. Prepare a vertical analysis of Sports Unlimited\'s 2018 and 2017 bal
ID: 2393749 • Letter: R
Question
Required 1. Prepare a vertical analysis of Sports Unlimited's 2018 and 2017 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 answers to 1 decimal place.) SPORTS UNLIMITED Balance Sheets December 31 2018 2017 Amount Amount Current assets: $ 211,500 99,900 82,800 28,800 $140,800 50,400 154,400 14,400 Accounts receivable Prepaid rent Long-term assets: Investment in bonds Land Equipment Less: Accumulated depreciation 108,900 238,500 206,100 (76,500) $900,000 280,000 202,400 (42,400) $800,000 Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Interest payable Income tax payable $75,600 28,800 21,600 $88,800 14,400 16,000 Long-term liabilities: Notes payable 243,900 234,400 Stockholders' equity: 288,000 242,100 Total liabilities and stockholders' equity900,000 288,000 158,400 $800,000 Common stock Retained earningsExplanation / Answer
SPORTS UNLIMITED
Balance Sheets
December 31
2018
2017
Amount
%
Amount
%
Assets
Current assets
Cash
211,500
23.5%
140,800
17.6%
Accounts receivable
99,900
11.1%
50,400
6.3%
Inventory
82,800
9.2%
154,400
19.3%
Prepaid Rent
28,800
3.2%
14,400
1.8%
Long-term assets
Investment in Bonds
108,900
12.1%
0
0%
Land
238,500
26.5%
280,000
35%
Equipment
206,100
22.9%
202,400
25.3%
Less: Accumulated depreciation
(76,500)
(8.5) %
(42,400)
(5.3) %
Total assets
900,000
100%
800,000
100%
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable
75,600
8.4%
88,800
11.1%
Interest payable
28,800
3.2%
14,400
1.8%
Income tax payable
21,600
2.4%
16,000
2%
Long-term liabilities
Notes payable
243,900
27.1%
234,400
29.3%
Stockholders' equity
Common stock
288,000
32%
288,000
36%
Retained earnings
242,100
26.9%
158,400
19.8%
Total liabilities and stockholders’ equity
900,000
100%
800,000
100%
SPORTS UNLIMITED
Balance Sheets
December 31
2018
2017
Amount
%
Amount
%
Assets
Current assets
Cash
211,500
23.5%
140,800
17.6%
Accounts receivable
99,900
11.1%
50,400
6.3%
Inventory
82,800
9.2%
154,400
19.3%
Prepaid Rent
28,800
3.2%
14,400
1.8%
Long-term assets
Investment in Bonds
108,900
12.1%
0
0%
Land
238,500
26.5%
280,000
35%
Equipment
206,100
22.9%
202,400
25.3%
Less: Accumulated depreciation
(76,500)
(8.5) %
(42,400)
(5.3) %
Total assets
900,000
100%
800,000
100%
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable
75,600
8.4%
88,800
11.1%
Interest payable
28,800
3.2%
14,400
1.8%
Income tax payable
21,600
2.4%
16,000
2%
Long-term liabilities
Notes payable
243,900
27.1%
234,400
29.3%
Stockholders' equity
Common stock
288,000
32%
288,000
36%
Retained earnings
242,100
26.9%
158,400
19.8%
Total liabilities and stockholders’ equity
900,000
100%
800,000
100%
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