Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Game-On Sports operates in two distinct segments: athletic equipment and accessories. The income statement for each operating segment is presented below. Required: 1. Complete
Game-On Sports operates in two distinct segments: athletic equipment and accessories. The income statement for each operating segment is presented below. Required: 1. Complete the "%" columns to be used in a vertical analysis of Game-On Sports' two operating segments. Express each amount as a percentage of sales. (Round your percentage answers to 1 decimal place.) GAME-ON SPORTS Income Statement For the Year Ended December 31, 2021 Athletic Equipment Accessories Amount % Amount % Net sales $ 3,150,000 $ 3,600,000 Cost of goods sold 1,390,000 1,690,000 Gross profit 1,760,000 Operating expenses Operating income 790,000 970,000 Other income (expense) 82,000 1,910,000 840,000 1,070,000 (17,000) Income before tax Income tax expense 1,052,000 1,053,000 239,000 214,000 Net income $ 813,000 $ 839,000 2. Use vertical analysis to compare the profitability of the two operating segments. Which segment is more profitable? Accessories Athletic equipment
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started