The balance sheets for Fantasy Football for 2021 and 2020 are provided below. FANTASY FOOTBALLBalance SheetsDecember 31 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Supplies Long-term assets: Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders’ Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders’ equity: Common stock Retained earnings Total liabilities and stockholders’ equity $ 208,000 856,000 1,900,000 124,000 1,292,000 (380,000) $ 4,000,000 $ 168,000 0 76,000 760,000 786,600 2,209,400 $ 4,000,000 $ 262,200 999,400 1,349,000 87,400 1,292,000 (190,000) $ 3,800,000 $ 129,200 3,800 76,000 760,000 786,600 2,044,400 $ 3,800,000 Required: 1. Prepare a vertical analysis of Fantasy Football’s 2021 and 2020 balance sheets. Express each amount as a percentage of total assets for that year. 2. Prepare a horizontal analysis of Fantasy Football’s 2021 balance sheet using 2020 as the base year.
The balance sheets for Fantasy Football for 2021 and 2020 are provided below.
| FANTASY FOOTBALL Balance Sheets December 31 |
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| 2021 | 2020 | |
|
Assets Current assets: Cash Inventory Supplies Long-term assets: Equipment Less: Total assets Liabilities and Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders’ equity: Common stock Total liabilities and stockholders’ equity |
$ 208,000 856,000 1,900,000 124,000
1,292,000 (380,000) $ 4,000,000
$ 168,000 0 76,000
760,000
786,600 2,209,400 $ 4,000,000 |
$ 262,200 999,400 1,349,000 87,400
1,292,000 (190,000) $ 3,800,000
$ 129,200 3,800 76,000
760,000
786,600 2,044,400 $ 3,800,000 |
Required:
1. Prepare a vertical analysis of Fantasy Football’s 2021 and 2020 balance sheets. Express each amount as a percentage of total assets for that year.
2. Prepare a horizontal analysis of Fantasy Football’s 2021
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