Exercise 12-2A Prepare vertical analysis (LO12-1) The income statements for Federer Sports Apparel for 2022 and 2021 are presented below. Required: Prepare a vertical analysis of the data for 2022 and 2021. (Round your percentage answers to 1 decimal place.) FEDERER SPORTS APPAREL Income Statement For the Years Ended December 31 2022 2021 Amount % Amount % Net sales $ 18,600,000 $ 15,300,000 Cost of goods sold 13,280,400 6,885,000 Gross profit 5,319,600 Operating expenses 1,543,800 8,415,000 1,147,500 Depreciation expense 948,600 963,900 Inventory write-down 167,400 0 Loss (litigation) 1,450,800 321,300 Income before tax 1,209,000 5,982,300 Income tax expense 409,200 1,943,100 Net income $ 799,800 $ 4,039,200 Exercise 12-3A Prepare horizontal analysis (LO12-2) The income statements for Federer Sports Apparel for 2022 and 2021 are presented below. Required: Prepare a horizontal analysis for 2022 using 2021 as the base year. (Decreases should be indicated with a minus sign. Round your percentage answers to 1 decimal place.) FEDERER SPORTS APPAREL Income Statement For the Years Ended December 31 Year Increase (Decrease) 2022 2021 Amount % Net sales $ 19,500,000 $ 16,200,000 Cost of goods sold 12,870,000 7,435,800 Gross profit 6,630,000 8,764,200 Operating expenses 1,794,000 1,360,800 Depreciation expense 1,170,000 1,170,000 Inventory write-down 351,000 Loss (litigation) 1,696,500 275,400 Income before tax 1,618,500 5,958,000 Income tax expense 604,500 2,203,200 Net income $ 1,014,000 $ 3,754,800