Lake Athletics sells two distinct product lines, Apparel and Equipment, and has provided the Income Statement for each product line. The Controller has asked you to perform the vertical analysis of each product lines Income Statement. Use the information included in the Excel Simulation and the Excel functions described below to complete the task.

• Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell, =B9 was entered, the formula would output the result from cell B9, or 3,150,000 in this example.
• Absolute Reference: Allows you to maintain the original cell reference when a formula is copied to another cell. The cell reference is locked by putting a dollar sign ($) before the column and row references. By default a cell reference is relative, so when you copy a formula to another cell the values update based on a relative reference. For example, if you copy the formula =B8+B9 from cell C1 to cell C2, the formula in cell C2 will relatively update to be =B9+B10 since the copied formula moved down one cell, the formula cell references also moved down one cell. Conversely, by adding the absolute cell reference locks to the equation, the formula will not change when copied to any other cell. For example, =$B$8+$B$9 written in cell C1 is copied to cell C2, the formula in cell C2 will remain =$B$8+$B$9. You can also use a mixed cell reference by only locking the column or row only ($B8 or B$8) which locks that specific column or row and the other reference becomes a relative reference and moves with the formula as its copied to another cell. For example, if you copy the formula =B$8+B9 from cell C1 to cell C2, the formula in cell C2 will update to be =B$8+B10 since the copied formula moved down one cell, the formula cell relative references also moved down one cell, but the absolute locked reference remained the same.
• Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: + (plus sign to add), - (minus sign to subtract), * (asterisk sign to multiply), and / (forward slash to divide). From the Excel Simulation below, if in a blank cell =B9-B10 was entered, the formula would subtract the values from those cells and output the result, or 1,750,000 in this example. If using the other math symbols the result would output an appropriate answer for its function.

All answers must be entered as a formula (calculation!!)

Thank you so so much in advance! :)

XL Perform Vertical Analysis - Excel ? FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri - 11 = % Paste BIU- Cells Editing Alignment Number Conditional Format as Cell Formatting Table Styles Styles Clipboard Font A1 : Lake Athletics sells two distinct product lines: Apparel and Equipment. V D E F A B 1 Lake Athletics sells two distinct product lines: Apparel and Equipment. 2 The income statement for each product line appears below. 3 4 5 6 LAKE ATHLETICS Income Statement For the Year Ended December 31, 20X1 7 Apparel Equipment 8 Amount Percent Amount Percent 9 Net sales $3,150,000 $5,550,000 10 Cost of goods sold 1,400,000 2,720,000 11 Gross profit 1,750,000 2,830,000 12 Operating expenses 800,000 875,000 13 Operating income 950,000 1,955,000 14 Other income 20,000 10,000 15 Income before tax 970,000 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 21 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 24 questions below: 25 Which product line has the highest gross profit %? 27 Which product line has the highest net income %? 26 28 29 30 31 Sheet1 + 000