Exercise 12-4 (Algo) Part 2 2. Prepare a horizontal analysis for 2025 using 2024 as the base year. (Note: If the percentage increase or decrease cannot be calculated, then leave the cell blank. Decreases should be indicated by a minus sign. Round your percentage answers to 1 decimal place.) Assets Cash Accounts receivable Inventory Buildings Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Contingent liability Common stock Retained earnings Total liabilities and stockholders' equity FEDERER SPORTS APPAREL Balance Sheet December 31 $ 2025 $ Year 2,370,000 $ 948,000 1,215,000 972,000 4,275,000 2,280,000 8,460,000 8,460,000 (1,320,000) (660,000) $ 15,000,000 $12,000,000 2024 1,725,000 $ 1,500,000 1,470,000 1,010,000 6,000,000 6,000,000 5,805,000 3,490,000 $ 15,000,000 $ 12,000,000 Increase (Decrease) Amount %

Q: Utility expense

A: Energy, water, and trash disposal are all utilities that are used in the home or business and incur…

Q: Working Capital

A: Working capital = Current Assets - Current Liabilities  We know that current assets and current…

Q: What is an operating segment?

A: Operating segment: It is defined as providing information about the business actives with an…

Q: Define Regulation National Market System (Reg NMS)

A: Answer: National market system (NMS) is nothing but a set of rules adopted by securities and…

Q: ustomizing cost

A: Cost accounting is one of the accounting system that is used by the businesses. The main purpose of…

Q: Why asset allocation strategy differ across national boundries

A: Asset allocation involves balancing the risk and rewards of a portfolio by apportioning the…

Q: What can be understood from “Segment Reporting"?

A: Financial reporting:   It refers to the disclosure of financial results of an organization for a…

Q: What is shared service agreement menas in a internal control system?

A: Internal Control System:-It is a set of rules and protocol which the company and management set for…

Q: Define trade-off theory

A: Answer: The trade-off theory suggests a leveraged company’s valuation is equal to the value of an…

Q: State the key differences between IFRS and U.S. GAAP.

A: IFRS stands for International Financial Reporting Standards. These are accounting standards issued…

Q: Explanation 1031 like-kind exchange

A:

Q: Define warehouse receipt financing

A: A warehouse receipt is a document of proof about the ownership of goods kept in that warehouse.

Q: Define dealer market

A: Answer: Usually, secondary market is a place in which investor will buy and sell securities between…

Q: What is an agency order?

A: Solution- Agency order An order to buy or sell that a broker executes with another investor. The…

Q: What information must an enterprise report by geographic area?

A: The information that an enterprise must report by geographic area are:  Revenues from external…

Q: What is a reportable operating segment?

A: Operating segment is a segment of a company which can generate its own revenue and has its own…

Q: What is meant by the term decentralization?

A: Decision-making process:Decision making can be defined as the process of making choices through the…

Q: How are IFRS currently used in the United States?

A: International Financial Reporting Standards:   They are commonly known as IFRS. It is a set of…

Q: difference between IFRS standardization and harmonization

A: Financial Reporting (IFRS) are a set of accounting principles for financial reporting published by…