Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Game-On Sports operates in two distinct segments: athletic equipment and accessorles. The income statement for each operating segment is presented below. Required: 1. Complete the
Game-On Sports operates in two distinct segments: athletic equipment and accessorles. The income statement for each operating segment is presented below. Required: 1. Complete the "%" columns to be used In a vertical analysls 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 9% Net sales $3,050,000 $3,500,000 Cost of goods sold 1,350,000 1,670,000 Gross profit 1,700,000 1,830,000 750,000 Operating expenses 800,000 Operating income 950,000 1,030,000 Other income (expense) 80,000 (15.000) Income before tax 1,030,000 1,015,000 Income tax expense 235,000 210,000 S 795,000 S 805,000 Net income 2. Use vertical analysis to compare the profitability of the two operating segments. Which segment is more profitable? Athletic equlpment O Accessorles
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