Exercise 12-4 (Algo) Part 1Required:1. Prepare a vertical analysis of the balance sheet data for 2025 and 2024. Express each amount as a percentage of totalassets. (Amounts to be deducted should be indicated by a minus sign. Round your answers to 1 decimal place.)AssetsCashAccounts receivableInventoryBuildingsLess: Accumulated depreciationTotal assetsLiabilities and Stockholders' EquityAccounts payableContingent liabilityCommon stockRetained earningsTotal liabilities and stockholders' equityFEDERER SPORTS APPARELBalance SheetDecember 31Amount2025$ 1,712,5001,175,0002,862,5008,250,000(1,500,000)$ 12,500,000$1,237,5001,200,0005,100,0004,962,500$ 12,500,000%$Amount2024600,000780,0001,120,0008,250,000(750,000)$10,000,000.$ 1,300,0001,120,0005,100,0002,480,000$10,000,000% $2. Prepare a horizontal analysis for 2025 using 2024 as the base year. (Note: If the percentage increase or decrease cannot becalculated, then leave the cell blank. Decreases should be indicated by a minus sign. Round your percentage answers to 1 decimaplace.)AssetsCashAccounts receivableInventoryBuildingsLess: Accumulated depreciationTotal assetsLiabilities and Stockholders' Equity.Accounts payableContingent liabilityCommon stockFEDERER SPORTS APPARELBalance SheetDecember 31Retained earningsTotal liabilities and stockholders' equity2025Year2024600,000780,0001,120,0008,250,000(750,000)$ 1,712,500 $1,175,0002,862,5008,250,000(1,500,000)$ 12,500,000 $10,000,000$ 1,237,500 $1,300,0001,200,0001,120,0005,100,0005,100,0004,962,5002,480,000$ 12,500,000 $10,000,000Increase (Decrease)Amount$%

Vertical analysis and horizontal analysis are two methods used in financial statement analysis to…

Required: 1. Prepare a vertical analysis of the balance sheet data for 2025 and 2024. Express each amount as a percentage of 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 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 Amount 2025 $ 1,712,500 1,175,000 2,862,500 8,250,000 (1,500,000) $ 12,500,000 $ 1,237,500 1,200,000 5,100,000 4,962,500 $ 12,500,000 $ Amount 2024 600,000 780,000 1,120,000 8,250,000 (750,000) $ 10,000,000 $ 1,300,000 1,120,000 5,100,000 2,480,000 $10,000,000