Game-On Sports operates in two distinct segments: athletic equipment and accessories. The income statement for each operating segment is presented below.

Required:
1. Complete the “%” columns to be used in a vertical analysis of Game-On Sports’ 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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GAME-ON SPORTS Income Statement For the year ended December 31, 2024 Athletic Equipment Amount Net sales Cost of goods sold Gross profit Operating expenses Operating income Other income (expense) Income before tax Income tax expense Net income $3,050,000 1,350,000 1,700,000 750,000 950,000 80,000 1,030,000 235,000 $ 795,000 % Accessories Amount $3,500,000 1,670,000 1,830,000 800,000 1,030,000 (15,000) 1,015,000 210,000 $ 805,000 %