Sports Emporium has two operating segments: sporting goods and sports apparel. The income statement for each operating segment is presented below.

Required:

1. Complete the "%" columns to be used in a vertical analysis of Sports Emporium's two operating segments. Express each amount as a percentage of sales. (Round your answers to 1 decimal place.)

Net sales Cost of goods sold Gross profit Operating expenses Operating income Other income (expense) Income before tax Income tax expense Net income SPORTS EMPORIUM Income Statement For the Year Ended December 31, 2021 Sporting Goods Sports Apparel Amount % Amount % $ 1.625,000 $ 900,000 970,000 480,000 655,000 420,000 380,000 270,000 275,000 150,000 16,500 (11,500) 291,500 138,500 73,000 63,000 $ 218,500 $ 75,500 2. Use vertical analysis to compare the profitability of the two operating segments. Which segment has a higher net income as a percentage of net sales? Sports Apparel Sporting Goods