Sports Emporium has two operating segments: sporting goods and sports apparel. The income statement for each operating segment is presented below.

Required:
1. Complete the "%" columns to be used in a vertical analysis of Sports Emporium's two operating segments. Express each amount as a percentage of sales.
2. Use vertical analysis to compare the profitability of the two operating segments. Which segment is more profitable?

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SPORTS EMPORIUM Income Statement For the year ended December 31, 2012 Sporting Goods Sports Apparel Amount Amount $870,000 390,000 480,000 240,000 240,000 Sales revenue Cost of goods sold $1,550,000 940,000 610,000 350,000 260,000 15,000 275,000 70,000 $ 205,000 Gross profit Operating expenses Operating income Other income (expense) 10 Income before tax Income tax expense Net income 230,000 60,000 $170,000