Answer in formulas

1. Use vertical analysis to compare profitability. Perform Vertical Analysis - Excel 7 0 - 6 X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri 11 - A A = Paste BIU- Alignment Number Conditional Format as Cell Cells Formatting ~ Table= Styles = Clipboard Fant Styles X A C D E F Lake Athletics sells two distinct product lines: Apparel and Equipment. The income statement for each product line appears below. LAKE ATHLETICS Income Statement For the Year Ended December 31, 20K1 Apparel Equipment Amount Percent Amount Percent Net sales 53,150,000 $5,550,000 10 Cost of goods sold 1,400,000 2.720 000 11 Gross profit 1,750,000 2,830,000 12 Operating expenses 800,000 875,000 13 Operating income 950,000 1,955,000 14 Other income 20,000 10,000 15 Income before tax 970,000 1,965,000 16 Income tax expense 241,250 491,000 17 Net income $728,750 $1,474,750 18tequired: 20 .. Use appropriate Excel formulas to perform vertical analysis and complete the "Percent" columns 21 for both product lines above. Express each amount as a percentage of net sales. lote: You should use absolute references in the divisors of all formulas. 23 I. Use the Excel IF function and the completed vertical analysis above to answer each of the 24 questions below: 25 Which product line has the highest gross profit %%? 27 Which product line has the highest net income "? 28 29 30