FILE INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW A A Calibri 11 Paste B IU A Alignment Number Conditional Format as Cell Cells Editing Formatting Table Styles Clipboard Font Styles A1 fe Lake Athletics sells two distinct product lines: Apparel and Equipment. A E Lake Athletics sells two distinct product lines: Apparel and Equipment. 1 2 The income statement for each product line appears below. 3 LAKE ATHLETICS 5 Income Statement 6 For the Year Ended December 31, 20X1 7 Apparel Equipment 8 Amount Percent Amount Percent 9 Net sales 10 Cost of goods sold 11 Gross profit $3,150,000 $5,550,000 2,720,000 2,830,000 1,400,000 1,750,000 12 Operating expenses 13 Operating income 800,000 875,000 950,000 1,955,000 14 Other income 20,000 10,000 15 Income before tax 970,000 1,965,000 Incama AVAnnrn D41 250 A01 00n FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW Sign VIEW Calibri A 11 A Paste AAlignment Number B IU Conditional Format as Cell Cells Editing Formatting Table Styles Clipboard Font Styles A1 fr Lake Athletics sells two distinct product lines: Apparel and Equipment. A E 13 Operating income 14 Other income 950,000 1,955,000 20,000 970,000 10,000 15 Income before tax 1,965,000 16 Income tax expense 241,250 491,000 17 Net income $728,750 $1,474,750 18 19 Required: 20 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. 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 21 24 questions below: 25 Which product line has the highest gross profit %? Which product line has the highest net income %? 26 27