ENTRIES ARE TO ENTERED AS FORMULAS

1. Use vertical analysis to compare profitability. A1 fx Lake Athletics sells two distinct product lines: Apparel and Equipment. A B C D For the Year Ended December 31, 20x1 \begin{tabular}{|c|c|c|c|c|} \hline & \multicolumn{4}{|c|}{ For the Year Ended December 31,201} \\ \hline & \multicolumn{2}{|c|}{ Apparel } & \multicolumn{2}{|c|}{ Equipment } \\ \hline & Amount & Percent & Amount & Percent \\ \hline Net sales & $3,150,000 & & $5,550,000 & \\ \hline Cost of goods sold & 1,400,000 & & 2,720,000 & \\ \hline Gross profit & 1,750,000 & & 2,830,000 & \\ \hline Operating expenses & 800,000 & & 875,000 & \\ \hline Operating income & 950,000 & & 1,955,000 & \\ \hline Other income & 20,000 & & 10,000 & \\ \hline Income before tax & 970,000 & & 1,965,000 & \\ \hline Income tax expense & 241,250 & & 491,000 & \\ \hline Net income & $728,750 & & $1,474,750 & \\ \hline \end{tabular} Required: 1. Use appropriate Excel formulas to perform vertical analysis and complete the "Percent" columns for both product lines above. Express each amount as a percentage of net sales. Note: You should use absolute references in the divisors of all formulas. 2. Use the Excel If function and the completed vertical analysis above to answer each of the questions below: Which product line has the highest gross profit \%? Which product line has the highest net income \%