12 May 21 Saved Clipboard Font Styles A1 X ka Lake Athletics sells two distinct product lines: Apparel and Equipment. F 8.8 B D 7 E Apparel Equipment 8 Amount Percent Amount 9 Net sales Percent $3,150,000 100.0 $5,550,000 10 cost of goods sold 100.0 1,400,000 44.4 2,720,000 11 Gross pront 49.0 1,750,000 55.6 2,850,000 51.0 12 Operating expenses 800,000 25.4 875,000 15.8 13 Operating income 950,000 30.2 1,955,000 35.2 14 Other income 20,000 0.6 10,000 0.2 15 Income before tax 970,000 30.8 1,965,000 35.41 16 Income tax expense 241,250 7.7 491,000 17 Net income $728,750 23.1 51,474,750 26.61 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 26 Which product line has the highest gross profit %? 27 Which product line has the highest net income %? 28 29 Sheet1 100 READY Automatis 1 of 2 NAXI