Required: Compute the annual dollar changes and percent changes for each of the following items. (Use cells A2 to C7 from the given information to complete this question. Decreases should be entered with a minus sign. Round your percentage answers to one decimal place.) Lake Athletics sells two distinct product lines: Apparel and Equipment. The income statement for each product line appears below. Required: 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. Note: vou should use absolute references in the divisors of ail formulos. 2. Use the Excel If function and the completed vertical analysis above to answer each of the questions below: 19 Required: 20 1. 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. 22 Note: You should use absolute references in the divisors of all formulas. 23 2. Use the Excel If function and the completed vertical analysis above to answer each of the 24 questions below: 26 Which product line has the highest gross profit \%? 27. Which product line has the highest net income % ? \begin{tabular}{|l|r|r|r|} \hline At December 31 & Current Year & 1 Year Ago & 2 Years Ago \\ \hline Assets & & & \\ \hline Cash & $31,800 & $35,625 & $37,800 \\ \hline Accounts receivable, net & 89,500 & 62,500 & 50,200 \\ \hline Merchandise inventory & 112,500 & 82,500 & 54,000 \\ \hline Prepaid expenses & 10,700 & 9,375 & 5,000 \\ \hline Plant assets, net & 278,500 & 255,000 & 230,500 \\ \hline Total assets & $523,000 & $445,000 & $377,500 \\ \hline Liabilities and Equity & & & \\ \hline Accounts payable & $129,900 & $75,250 & $51,250 \\ \hline Long-term notes payable & 98,500 & 101,500 & 83,500 \\ \hline Common stock, $10 par value & 163,500 & 163,500 & 163,500 \\ \hline Retained earnings & 131,100 & 104,750 & 79,250 \\ \hline Total liabilities and equity & $523,000 & $445,000 & $377,500 \\ \hline \end{tabular} Required: 1. Express the balance sheets in common-size percents. (Use cells A4 to D17 from the given information to complete this question.) SIMON COMPANY Common-Size Comparative Balance Sheets December 31 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable? 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favorable or unfavorable? Simon Company's year-end balance sheets follow. The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: (Use celis A4 to E29 from the given information to complete this question.) (1-b) Determine if diays' sales uncollected imptoved or worseried in the current year. (2-a) Compute accounts receivable turnover. (2.b) Determine if accounts receivable turnover rabo improved or worsened in the current year. (3-a) Compute inventory turnoves. (Use cells A4 to E29 from the given information to complete this question.) (4-b) For each ratio, determine if days' sales in inventory improved or worsened in the current year. Days' sales in inventory Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your Nothing in this area will be graded, but it will be submitted with your assignment