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The income statements for Federer Sports Apparel for 2025 and 2024 are presented below. Required: Prepare a vertical analysis of the data for 2025

The income statements for Federer Sports Apparel for 2025 and 2024 are presented below. Required: Prepare a vertical analysis of the data for 2025 and 2024. Note: Round your percentage answers to 1 decimal place. FEDERER SPORTS APPAREL Income Statements For the Years Ended December 31 2025 2024 Amount % Amount % Net sales $ 21,800 100.0 $ 17,000 100.0 Cost of goods sold 13,350 61.2 7,599 44.7 Gross profit 8,450 38.8 9,401 55.3 Operating expenses 1,900 8.7 1,224 7.2 Depreciation expense 1,300 6.0 1,020 6.0 Inventory write-down 500 2.3 0 0.0 Loss (litigation) 1,650 7.6 408 2.4 Income before tax 3,100 14.2 6,749 39.7 Income tax expense 525 2.4 2,108 12.4 Net income $ 2,575 11.8 $ 4,641 27.3

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