The Sports Warehouse operates in two distinct segments; equipment and apparel. The income statements for each operating segment are presented below.

Required:
1. Complete the €œ%€ columns to be used in a vertical analysis of The Sports Warehouse€™s two operating segments. Express each amount as a percentage of sales.
2. Use vertical analysis to compare the profitability of the two operating segments. Which segment is moreprofitable?

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The Sports Warehouse Income Statements For the Year Ended December 31, 2015 Equipment arel Amount Amount % Sales Cost of goods sold Gross profit Operating expenses Operating income Other income (expense) Income before tax Income tax expense Net income $1.700.000 1,100,000 600.000 250,000 350.000 25,000 375,000 90,000 $285.000 $2,850,000 1,400,000 1,450,000 500,000 950.000 (60,000) 90.000 280,000 610,000