IE $($Static$)$ Preparing a Vertical Analysis

Lake Athletics sells two distinct product IInes: Apparel and Equipment.

The income statement for each product line appears below.

LAKE ATHLETICS Incone Statement For the Year Ended Decenber $31,2$ex$1$ Apparel Equipment:

Amount Percent Anount Percent Net sales $ $3,150,000$ $ $5,550,000$ Cost of goods sold $1,409,0002,720,000$ Gross profit $1,750,0092,830,009$ Operating expenses $800,009875,000$ Operating income $950,0091,955,006$ Other incone $($expense$)29,00910,000$ Income before tax $979,0091,965,009$ Income tax expense $241,250491,000$ Net income $ $728,750$ $ $1,474,009$

Required:

Use appropriate Excel formulas to perform vertical analysls and complete the "Percent" columns for both product lines above. Express each amount as a percentage of net sales.

Note:

You should use absolute references in the divisors of all formulas.

Fill out every cell, even when the number for the cell is $0.$ Use the completed vertical analysis above to answer each of the questions below:

Which product line has the highest gross profit percent?

Which product line has the highest net income percent?

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.

$1.$USE EXCEL FORMULAS ONLY

$2.$BEGIN EACH FORMULA WITH AN $=$ SIGN

$3.$REFERENCE CELLS INSTEAD OF ENTERING VALUES

EXAMPLE: $=$B$3+$C$3$