1. Use vertical analysis to compare profitability. ? X Perform Vertical Analysis - Excel :- FORMULAS DATA REVIEW FILE HOME INSERT PAGE LAYOUT VIEW Sign In Calibri 11 - A A % Paste BIU Alignment Number Cells Conditional Format as Cell Formatting Table Styles Styles Clipboard Font A1 Lake Athletics sells two distinct product lines: Apparel and Equipment. D E F 1 B c Lake Athletics sells two distinct product lines: Apparel and Equipment. 2 The income statement for each product line appears below. 3 7 Percent 8 9 Net sales 10 Cost of goods sold 11 Gross profit 12 Operating expenses 13 Operating income 14 Other income 15 Income before tax 16 Income tax expense 17 Net income 18 LAKE ATHLETICS Income Statement For the Year Ended December 31, 20X1 Apparel Equipment Amount Percent Amount 53,150,000 55,550,000 1,400,000 2,720,000 1,750,000 2,830,000 800,000 875,000 950,000 1,955,000 20,000 10,000 970,000 1,965,000 241,250 491,000 5728,750 51,474,750 1 -9 Required: o 1. Use appropriate Excel formulas to perform vertical analysis and complete the "Percent" columns for both product lines above. Express each amount as a percentage of net sales. 2 Note: You should use absolute references in the divisors of all formulas 3 2. Use the Excel IF function and the completed vertical analysis above to answer each of the questions below: 4 5 06 7 8 9 Which product line has the highest gross profit %? Which product line has the highest net income 92