Required 1. Prepare a vertical analysis of Sports Unlimited\'s 2018 and 2017 bal

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 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent S 217,800 101,700 91,800 28,800 $ 148,000 51,200 159,200 14,400 Long-term assets: Investment in bonds Land Equipment Less: Accumulated depreciation 100,800 191,700 213,300 (45,900) S 900,000 253,600 201,600 (28,000) $ 800,000 Total assets Liabilities and Stockholders' Equity Current liabilities: 59,400 28,800 15,300 S Accounts payable Interest payable Income tax payable 84,800 14,400 15,200 Long-term liabilities: Notes payable 301,500 280,000 Stockholders' equity: 288,000 207,000 Total liabilities and stockholders equity 900,000 288,000 117,600 $ 800,000 Common stock Retained earnings

Explanation / Answer

SPORTS UNLIMITED Balance Sheet December 31 2018 2017 Amount % Amount % Assets Current assets: Cash 217800 24.2% 148000 18.5% Accounts receivable 101700 11.3% 51200 6.4% Inventory 91800 10.2% 159200 19.9% Prepaid rent 28800 3.2% 14400 1.8% Long-term assets: Investment in bonds 100800 11.2% 0 0.0% Land 191700 21.3% 253600 31.7% Equipment 213300 23.7% 201600 25.2% Less Accumulated depreciation -45900 -5.1% -28000 -3.5% Total Assets 900000 100.0% 800000 100.0% Liabilities and Stockholders' Equity Current liabilities: Accounts payable 59400 6.6% 84800 10.6% Interest payable 28800 3.2% 14400 1.8% Income tax payable 15300 1.7% 15200 1.9% Long-term liabilities: Notes payable 301500 33.5% 280000 35.0% Stockholders' equity: Common stock 288000 32.0% 288000 36.0% Retained earnings 207000 23.0% 117600 14.7% Total liabilities and stockholders' equity 900000 100.0% 800000 100.0%

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