the income statements for federer sports apparel for 2025 and 2024 are presented below. required: prepare a…
the income statements for federer sports apparel for 2025 and 2024 are presented below. required: prepare a vertical analysis of the data for 2025 and 2024. note: round your percentage answers to 1 decimal place. federer sports apparel income statements for the years ended december 31 2025 2024 amount % amount % net sales $ 19,200 $ 15,700 cost of goods sold 13,220 7,128 gross profit 5,980 8,572 operating expenses 1,640 1,240 depreciation expense 1,040 1,052 inventory write - down 240 0 loss (litigation) 1,520 330 income before tax 1,540 5,950 income tax expense 460 2,057 net income $ 1,080 $ 3,894
Answer
Explanation:
Step1: Calculate percentage for 2025
For each line item in 2025, divide the amount by net - sales amount ($19,200) and multiply by 100. For example, for cost of goods sold in 2025: $\frac{13220}{19200}\times100\approx68.9%$
Step2: Calculate percentage for 2024
For each line item in 2024, divide the amount by net - sales amount ($15,700) and multiply by 100. For example, for cost of goods sold in 2024: $\frac{7128}{15700}\times100\approx45.4%$
Step3: Fill in the table
| FEDERER SPORTS APPAREL - Income Statements - For the Years Ended December 31 | 2025 | 2024 | ||
|---|---|---|---|---|
| Amount | % | Amount | % | |
| Net sales | $19,200$ | $100.0%$ | $15,700$ | $100.0%$ |
| Cost of goods sold | $13,220$ | $68.9%$ | $7,128$ | $45.4%$ |
| Gross profit | $5,980$ | $31.1%$ | $8,572$ | $54.6%$ |
| Operating expenses | $1,640$ | $8.5%$ | $1,240$ | $7.9%$ |
| Depreciation expense | $1,040$ | $5.4%$ | $1,052$ | $6.7%$ |
| Inventory write - down | $240$ | $1.3%$ | $0$ | $0.0%$ |
| Loss (litigation) | $1,520$ | $7.9%$ | $330$ | $2.1%$ |
| Income before tax | $1,540$ | $8.0%$ | $5,950$ | $37.9%$ |
| Income tax expense | $460$ | $2.4%$ | $2,057$ | $13.1%$ |
| Net income | $1,080$ | $5.6%$ | $3,894$ | $24.8%$ |
Answer:
| FEDERER SPORTS APPAREL - Income Statements - For the Years Ended December 31 | 2025 | 2024 | ||
|---|---|---|---|---|
| Amount | % | Amount | % | |
| Net sales | $19,200$ | $100.0%$ | $15,700$ | $100.0%$ |
| Cost of goods sold | $13,220$ | $68.9%$ | $7,128$ | $45.4%$ |
| Gross profit | $5,980$ | $31.1%$ | $8,572$ | $54.6%$ |
| Operating expenses | $1,640$ | $8.5%$ | $1,240$ | $7.9%$ |
| Depreciation expense | $1,040$ | $5.4%$ | $1,052$ | $6.7%$ |
| Inventory write - down | $240$ | $1.3%$ | $0$ | $0.0%$ |
| Loss (litigation) | $1,520$ | $7.9%$ | $330$ | $2.1%$ |
| Income before tax | $1,540$ | $8.0%$ | $5,950$ | $37.9%$ |
| Income tax expense | $460$ | $2.4%$ | $2,057$ | $13.1%$ |
| Net income | $1,080$ | $5.6%$ | $3,894$ | $24.8%$ |