1 Lake Athletics sells two distinct product lines: Apparel and Equipment 2 The income statement for each product line appears below. LAKE ATHLETICS 4 Income Statement For the Year Ended December 31, 20X1 Apparel Equipment Amount Percent Amount Percent 3- ,150,000 1,400,000 50,000 9 Net sales 10 Cost of goods sold 11 Gross profit Operating expenses 3 Operating income 14 Other income 15 Income before tax 6 16 Income tax expense 241 $1,474,750 17Net income $728,750 18 19 Required: 20 1. Use appropriate Excel formulas to perform vertical analysis and complete the "Percent" columns 21 for both product lines above. Express each amount as a percentage of net sales. 22 Note: You should use absolute references in the divisors of all formulas. 23 2. Use the Excel IF function and the completed vertical analysis above to answer each of the 24 questions below: 25 Which product line has the highest gross profit %? 26 | 27 | Which product line has the highest net income %? Sheet1 | -- READY +62%