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. (Round your percentage answers to 1 decimal place.) GAME-ON SPORTS Income Statement For the Year Ended December 31, 2021 Athletic Equipment Accessories Amount Amount Net sales $ 3,175,000 1,400,000 100.0 $ 3,625,000 100.0 Cost of goods sold 1,695,000 Gross profit 1,775,000 1,930,000 Operating expenses 800,000 975,000 ৪50,000 Operating income 1,080,000 Other income (expense) (17,500) 1,062,500 82,500 2.5 (0.5) Income before tax 1,057,500 240,000 817,500 Income tax expense 215,000 5.9 Net income %24 847,500 2. Use vertical analysis to compare the profitability of the two operating segments. Which segment is more profitable? Athletic equipment
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. (Round your percentage answers to 1 decimal place.) GAME-ON SPORTS Income Statement For the Year Ended December 31, 2021 Athletic Equipment Accessories Amount Amount Net sales $ 3,175,000 1,400,000 100.0 $ 3,625,000 100.0 Cost of goods sold 1,695,000 Gross profit 1,775,000 1,930,000 Operating expenses 800,000 975,000 ৪50,000 Operating income 1,080,000 Other income (expense) (17,500) 1,062,500 82,500 2.5 (0.5) Income before tax 1,057,500 240,000 817,500 Income tax expense 215,000 5.9 Net income %24 847,500 2. Use vertical analysis to compare the profitability of the two operating segments. Which segment is more profitable? Athletic equipment
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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. (Round your percentage answers to 1 decimal place.)
GAME-ON SPORTS
Income Statement
For the Year Ended December 31, 2021
Athletic Equipment
Accessories
Amount
Amount
Net sales
$ 3,175,000
1,400,000
100.0 $ 3,625,000
100.0
Cost of goods sold
1,695,000
1,930,000
Gross profit
1,775,000
Operating expenses
800,000
850,000
Operating income
Other income (expense)
975,000
1,080,000
82,500
2.5
(17,500)
(0.5)
Income before tax
1,057,500
1,062,500
Income tax expense
240,000
215,000
847,500
5.9
Net income
817,500
2. Use vertical analysis to compare the profitability of the two operating segments. Which segment is more profitable?
Athletic equipment
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