Lake Athletics sells two distinct product lines: Apparel and Equipment. Skipped 2 The income statement for each product line appears below.
| Income Statement: | ||
| Apparel | Equipment | |
| Amount$ | Amount$ | |
| Net Sales | 3150000 | 5550000 |
| COGS | 1400000 | 2720000 |
| Gross profit | 1750000 | 2830000 |
| Operating exp. | 800000 | 875000 |
| Operating income | 950000 | 1955000 |
| Other income | 20000 | 10000 |
| Income before tax | 970000 | 1965000 |
| Income tax exp.’ | 241250 | 491000 |
| Net Income | 728750 | 1474000 |
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.
Darshita Changed status to publish August 12, 2020
| Apparel | Equipment | |||
| Amount$ | Percent | Amount$ | Percent | |
| Net Sales | 3150000 | 100% | 5550000 | 100% |
| COGS | 1400000 | 44.44 | 2720000 | 49.01 |
| Gross profit | 1750000 | 55.56 | 2830000 | 50.99 |
| Operating exp. | 800000 | 25.4 | 875000 | 15.77 |
| Operating income | 950000 | 30.16 | 1955000 | 35.23 |
| Other income | 20000 | 0.63 | 10000 | 0.18 |
| Income before tax | 970000 | 30.79 | 1965000 | 35.41 |
| Income tax exp.’ | 241250 | 7.66 | 491000 | 8.85 |
| Net Income | 728750 | 23.13 | 1474000 | 26.56 |
c
| Highest Gross Profit % = Apparel with 55.56% | ||||
| Highest Net Income % = Equipment with 26.56% | ||||
Darshita Changed status to publish August 12, 2020
