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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 earnings

Explanation / 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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