Game-On Sports operates in two distinct segments: athletic equipment and accessories. The income statement for each operating segment is presented below. Required: 1. Complete the "%" columns to be used in a vertical analysis of Game-On Sports' two operating segments. Express each amount as a percentage of sales. 2. Use vertical analysis to compare the profitability of the two operating segments. Which segment is more profitable? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the "%" columns to be used in a vertical analysis of Game-On Sports' two operating segments. Express each amount as a percentage of sales. (Round your answers to 1 decimal place.) Net sales Cost of goods sold Gross profit Operating expenses Operating income Other income (expense) Income before tax Income tax expense Net income GAME-ON SPORTS Income Statements For the Year Ended December 31, 2024 Athletic Equipment Amount $ 3,225,000 1,420,000 1,805,000 820,000 985,000 83,500 1,068,500 242,000 826,500 $ % Accessories Amount $ 3,675,000 1,705,000 1,970,000 870,000 1,100,000 (18,500) 1,081,500 $ 217,000 864,500 %

Game-On Sports operates in two distinct segments: athletic equipment and accessories. The income statement for each operating segment is presented below. Required: 1. Complete the "%" columns to be used in a vertical analysis of Game-On Sports' two operating segments. Express each amount as a percentage of sales. 2. Use vertical analysis to compare the profitability of the two operating segments. Which segment is more profitable? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the "%" columns to be used in a vertical analysis of Game-On Sports' two operating segments. Express each amount as a percentage of sales. (Round your answers to 1 decimal place.) Net sales Cost of goods sold Gross profit Operating expenses Operating income Other income (expense) Income before tax Income tax expense Net income GAME-ON SPORTS Income Statements For the Year Ended December 31, 2024 Athletic Equipment Amount $ 3,225,000 1,420,000 1,805,000 820,000 985,000 83,500 1,068,500 242,000 826,500 $ % Accessories Amount $ 3,675,000 1,705,000 1,970,000 870,000 1,100,000 (18,500) 1,081,500 $ 217,000 864,500 %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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