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.) SPORTS EMPORIUM Income Statement For the Year Ended December 31, 2021 Sporting Goods Sports Apparel Amount % Amount % $ $ Net sales 1,900,000 1,010,000 Cost of goods 1,080,000 460,000 sold Gross profit 820,000 550,000 Operating 490,000 380,000 expenses Operating 330,000 170,000 income 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? Sporting Goods Sports Apparel The income statements for Anything Tennis for the years ending December 31, 2021 and 2020, are provided below. Required: 1. Complete the "Amount" and "%" columns to be used in a horizontal analysis of the income statements for Anything Tennis. (Decreases should be indicated by a minus sign. Round your percentage answers to 1 decimal place.) ANYTHING TENNIS Income Statements For the Years Ended December 31 Increase (Decrease) 2021 2020 Amount % Net sales Cost of goods sold Gross profit Operating expenses Operating income Other income (expense) Income before tax Income tax expense Net income $ 3,650,000 2,210,000 1,440,000 840,000 600,000 11,200 611,200 103,000 $ 508,200 $ 2,740,000 1,410,000 1,330,000 654,000 676,000 6,600 682,600 146,000 $ 536,600 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.) SPORTS EMPORIUM Income Statement For the Year Ended December 31, 2021 Sporting Goods Sports Apparel Amount % Amount % $ $ Net sales 1,900,000 1,010,000 Cost of goods 1,080,000 460,000 sold Gross profit 820,000 550,000 Operating 490,000 380,000 expenses Operating 330,000 170,000 income 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? Sporting Goods Sports Apparel The income statements for Anything Tennis for the years ending December 31, 2021 and 2020, are provided below. Required: 1. Complete the "Amount" and "%" columns to be used in a horizontal analysis of the income statements for Anything Tennis. (Decreases should be indicated by a minus sign. Round your percentage answers to 1 decimal place.) ANYTHING TENNIS Income Statements For the Years Ended December 31 Increase (Decrease) 2021 2020 Amount % Net sales Cost of goods sold Gross profit Operating expenses Operating income Other income (expense) Income before tax Income tax expense Net income $ 3,650,000 2,210,000 1,440,000 840,000 600,000 11,200 611,200 103,000 $ 508,200 $ 2,740,000 1,410,000 1,330,000 654,000 676,000 6,600 682,600 146,000 $ 536,600
