Exercise 12-2 (Static) Prepare vertical analysis (LO12-1) 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. (Round your percentage answers to 1 decimal place.) FEDERER SPORTS APPAREL Income Statement For the Years Ended December 31 2025 2024 Amount % Amount Net sales Cost of goods sold Gross profit Operating expenses $ 18,800,000 100.0 $ 15,500,000 13,200,000 70.2 7,000,000 5,600,000 29.8 8,500,000 1,600,000 8.5 1,200,000 Depreciation expense 1,000,000 5.3 1,000,000 Inventory write-down i 200,000 1.1 0 Loss (litigation) 1,500,000 8.0 300,000 Income before tax 1,300,000 6.9 6,000,000 Income tax expense 450,000 2.4 2,000,000 Net income $ 850,000 $ 4,000,000 Proy 1 of 5