1819 Required:20 1. Use appropriate Excel formulas to perform vertical analysis and complete the "Percent" columnsfor 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 the2124questions below:2526Which product line has the highest gross profit %?27Which product line has the highest net income %?28293031Sheet1+) 1. Use vertical analysis to compare profitability.区日Perform Vertical Analysis - ExcelFILEНОМEINSERTPAGE LAYOUTFORMULASDATAREVIEWVIEWSign InCalibri11A A%PasteBIU-Alignment NumberConditional Format as CellCellsFormatting -Table Styles -Clipboard EFontStylesA1fxLake Athletics sells two distinct product lines: Apparel and Equipment.ВCDEF1 Lake Athletics sells two distinct product lines: Apparel and Equipment.2 The income statement for each product line appears below.34LAKE ATHLETICSIncome StatementFor the Year Ended December 31, 20X17ApparelEquipment8AmountPercentAmountPercent9 Net sales$3,150,0001,400,000$5,550,0002,720,0002,830,00010 Cost of goods sold11 Gross profit12 Operating expenses13 Operating income1,750,000800,000950,000875,0001,955,00014 Other income20,00010,00015 Income before tax1,965,000491,000970,00016 Income tax expense241,250$728,75017 Net income$1,474,7501819 Required:20 1. Use appropriate Excel formulas to perform vertical analysis and complete the "Percent" columnsfor 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 the2124questions below:Sheet1READY曲+ 100%

Vertical analysis is done to determine the change in line items with respect to the other line item.…

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: You should use absolute references in the divisors of all formulas. 2. Use the Excel IF function and the completed vertical analysis above to answer each of the questions below: Which product line has the highest gross profit %? Which product line has the highest net income %?

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: You should use absolute references in the divisors of all formulas. 2. Use the Excel IF function and the completed vertical analysis above to answer each of the questions below: Which product line has the highest gross profit %? Which product line has the highest net income %?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Which of the following expenses is usually listed last on the income statement? a. Advertising expense b. Income tax expense c. Salaries and benefits expense d. Cost of sales
List five ratios that are automatically provided by the vertical analysis of income statements.
The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2: Cash Beginning inventory Common stock Retained earnings The following five transactions occurred in Year 2: 1. First purchase (cash) 120 units @ $90 2. Second purchase (cash) 205 units @ $98 3. Sales (all cash) 350 units @ $197 4. Paid $13,950 cash for salaries expense 5. Paid cash for income tax at the rate of 25 percent of income before taxes $16, 800 17,600 (200 units @ $88) 15, 700 18,700 Required a. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cost flow. b. Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average. (Hint: Record the events under an accounting equation before preparing the statements.) Complete this question by entering your answers in the tabs below. Req A Req B1 Cost of goods sold Ending inventory Req…
. Which of the following figures from a firm’s financial statements should be used as itsflow rate when computing its inventory turns?a. Sales revenueb. Cost of goods soldc. Inventoryd. Net income
Using the information provided below from Ben Company prepare two income statements: A normal GAAP Income Statement A CVP Income Statement These Income Statements should be done in good form and in Excel. Include formulas.
Preparing an income statement) Prepare an income statement and a common-sized income statement from the following information. Click on the following icon in order to copy its contents into a spreadsheet.) Sales Cost of goods sold General and administrative expense Depreciation expense Interest expense Income taxes Complete the income statement below. (Round to the nearest dollar. NOTE: You may input expense acc as negative values.) Income Statement Gross profits Total operating expenses Operating income (EBIT) Earnings before taxes Net income $525,863 199,246 60,236 8,305 11,860 98,486 $ SS
Which of the following is a solvency ratio? a. Times interest earned. b. Inventory turnover ratio. c. Profit margin. d. Price-earnings ratio.
Give examples of Profitability Ratios from a company's financial statement, and how such profitability ratios are computed, and interpreted. As many Profitability ratios as possible.
How do you find the gross profit as a percent of sales and income from operations as a percent of sales?
7. Consider the following: Code: A= Gross Profit to Net Sales Ratio B= Gross Profit to Cost of Goods Sold Ratio Which equation is correct? B = A a. 1 - A b. B = 1 + A A с. B = 1 - A A d. B = A 1 + A
7,8,9,10
Calculate gross profit percentage and return on sales ratio