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Which product line has the highest gross profit %? Which product line has the highest net income %?

Which product line has the highest gross profit %? Which product line has the highest net income %?

FINANCIAL ACCOUNTING
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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Clipboard Font Styles A1 Lake Athletics sells two distinct product lines: Apparel and Equipment. A C D E F 4 LAKE ATHLETICS Income Statement 6. For the Year Ended December 31, 20X1 7 Apparel Equipment 8 Amount Percent Amount Percent $3,150,000 1,400,000 1,750,000 800,000 9 Net sales $5,550,000 10 Cost of goods sold 11 Gross profit 12 Operating expenses 13 Operating income 14 Other income 2,720,000 2,830,000 875,000 1,955,000 950,000 20,000 10,000 1,965,000 491,000 15 Income before tax 970,000 16 Income tax expense 241,250 $728,750 17 Net income $1,474,750 18 19 Required: 20 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. 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 questions below: 21 24 25 Which product line has the highest gross profit %? Which product line has the highest net income %? 26 27 Sheet1 READY + 100% Attempt(s) 曲
Transcribed Image Text:Clipboard Font Styles A1 Lake Athletics sells two distinct product lines: Apparel and Equipment. A C D E F 4 LAKE ATHLETICS Income Statement 6. For the Year Ended December 31, 20X1 7 Apparel Equipment 8 Amount Percent Amount Percent $3,150,000 1,400,000 1,750,000 800,000 9 Net sales $5,550,000 10 Cost of goods sold 11 Gross profit 12 Operating expenses 13 Operating income 14 Other income 2,720,000 2,830,000 875,000 1,955,000 950,000 20,000 10,000 1,965,000 491,000 15 Income before tax 970,000 16 Income tax expense 241,250 $728,750 17 Net income $1,474,750 18 19 Required: 20 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. 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 questions below: 21 24 25 Which product line has the highest gross profit %? Which product line has the highest net income %? 26 27 Sheet1 READY + 100% Attempt(s) 曲
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