1. Use vertical analysis to compare profitability. Perform Vertical Analysis - Excel ? - REVIEW VIEW...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/664ff70b6c48a_618664ff70aaba7b.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/664ff70c6fd2c_619664ff70bb1063.jpg)
Transcribed Image Text:
1. Use vertical analysis to compare profitability. Perform Vertical Analysis - Excel ? - REVIEW VIEW FILE HOME INSERT PAGE LAYOUT FORMULAS DATA Calibri 11 A A % Paste BIU - A Alignment Number Clipboard Font Conditional Format as Cell Formatting Table Styles Styles Cells Editing Al fx Lake Athletics sells two distinct product lines: Apparel and Equipment. A B C D E 1 Lake Athletics sells two distinct product lines: Apparel and Equipment. 2 The income statement for each product line appears below. 3 4 LAKE ATHLETICS Income Statement 5 6 7 8 9 Net sales 10 Cost of goods sold 11 Gross profit 12 Operating expenses 13 Operating income 14 Other income For the Year Ended December 31, 20X1 Apparel Amount $3,150,000 1,400,000 1,750,000 800,000 950,000 20.000 Percent Equipment Amount Percent $5,550,000 2,720,000 2,830,000 875,000 1,955,000 10.000 Sign In F A A1 A Xx fx B Lake Athletics sells two distinct product lines: Apparel and Equipment. C 6 7 For the Year Ended December 31, 20X1 Apparel 8 9 Net sales 10 Cost of goods sold 11 Gross profit 12 Operating expenses 13 Operating income Amount Percent $3,150,000 1,400,000 1,750,000 800,000 950,000 14 Other income 20,000 15 Income before tax 970.000 16 Income tax expense 241,250 17 Net income $728,750 18 19 Required: D E Equipment Amount Percent $5,550,000 2,720,000 2,830,000 875,000 1,955,000 10,000 1,965,000 491,000 $1,474,750 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 questions below: 24 25 26 Which product line has the highest gross profit %? 27 Which product line has the highest net income %? 28 29 Sheet1 F 1. Use vertical analysis to compare profitability. Perform Vertical Analysis - Excel ? - REVIEW VIEW FILE HOME INSERT PAGE LAYOUT FORMULAS DATA Calibri 11 A A % Paste BIU - A Alignment Number Clipboard Font Conditional Format as Cell Formatting Table Styles Styles Cells Editing Al fx Lake Athletics sells two distinct product lines: Apparel and Equipment. A B C D E 1 Lake Athletics sells two distinct product lines: Apparel and Equipment. 2 The income statement for each product line appears below. 3 4 LAKE ATHLETICS Income Statement 5 6 7 8 9 Net sales 10 Cost of goods sold 11 Gross profit 12 Operating expenses 13 Operating income 14 Other income For the Year Ended December 31, 20X1 Apparel Amount $3,150,000 1,400,000 1,750,000 800,000 950,000 20.000 Percent Equipment Amount Percent $5,550,000 2,720,000 2,830,000 875,000 1,955,000 10.000 Sign In F A A1 A Xx fx B Lake Athletics sells two distinct product lines: Apparel and Equipment. C 6 7 For the Year Ended December 31, 20X1 Apparel 8 9 Net sales 10 Cost of goods sold 11 Gross profit 12 Operating expenses 13 Operating income Amount Percent $3,150,000 1,400,000 1,750,000 800,000 950,000 14 Other income 20,000 15 Income before tax 970.000 16 Income tax expense 241,250 17 Net income $728,750 18 19 Required: D E Equipment Amount Percent $5,550,000 2,720,000 2,830,000 875,000 1,955,000 10,000 1,965,000 491,000 $1,474,750 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 questions below: 24 25 26 Which product line has the highest gross profit %? 27 Which product line has the highest net income %? 28 29 Sheet1 F
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Multiple Choice Questions 1. Direct materials are not usually easily traced to a product. A) True B) False 2. Product costs can be classified as one of three types: direct materials, direct labor, or...
-
Describe the broad facts about what, how, and for whom goods and services are produced.
-
Lorien Company wishes to prepare a forecasted income statement, a forecasted balance sheet, and a forecasted statement of cash flows for 2003. Lorien's balance sheet and income statement for 2002 are...
-
Current assets include: (a) Inventory, trade receivables and prepayments (b) Inventory, trade receivables and accruals (c) Inventory, trade payables and prepayments (d) Inventory, trade payables and...
-
Viva Vacations operates in Tampa, Florida. The company sells time shares and also manages residential properties that it rents to vacationers. Because of the large dip in the real estate market the...
-
Asking questions to witnesses is an effective way to gather information about a civil case. This can be done before litigation or during litigation. Match the tool obtain information with the correct...
-
International Business International financial strategy Discuss purposes of the international capital market (8marks) Outline and explain the four functions of the foreign exchange market (15mark)...
-
Now we travel to another facility and enter a workplace that repairs very large amphibious vehicles. The noise level is high, and large machines are in operation. We see several individuals working...
-
What do you feel are the most important aspects of performance management? How do you feel the changing job market has changed performance management? How do you feel technology has changed...
-
a . Define the term conservatism . b . Explain what the term prudence means. c . Is conservatism and / or prudence in conflict with the concept of neutrality? Explain.
-
Pestle analysis of broadband in Texas Also explain each factor of pestle into trend opportunities and threats. Please explain in detail
-
Explain what policies and/or procedures Oscar should have in place to ensure the hospital does not violate any software licensing agreements and end up in a similar situation noted in the Bank of...
-
On September 5, 2009, Ralph offered to purchase a farm that Farms Associates had listed for sale in 2008. At one point during the subsequent negotiations, Farms made a counter offer to Ralph, stating...
-
Describe the general ways that the revised Form 990, applicable for tax year 2008 and beyond, is different from previous versions.
-
Describe how a special payroll bank account is useful in paying the wages of employees.
-
What information is included in an employees individual earnings record, and what is its function?
-
Distinguish between an employees gross earnings and net earnings for a pay roll period.
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App