Answer :
Final answer:
To prepare a vertical analysis of the income statements for Federer Sports Apparel for 2025 and 2024, calculate the net income and revenue percentages for each year.
Explanation:
To prepare a vertical analysis of the income statements for Federer Sports Apparel for 2025 and 2024, we need to calculate the net income percentage and the revenue percentage for each year.
To calculate the Net Income Percentage, divide the Net Income for each year by the Total Revenue for that year and multiply by 100. For example, for 2025, the net income percentage would be (Net Income for 2025 / Total Revenue for 2025) * 100.
To calculate the Revenue Percentage, divide the Revenue for each year by the Total Revenue for that year and multiply by 100. For example, for 2025, the revenue percentage would be (Revenue for 2025 / Total Revenue for 2025) * 100.
Repeat this calculation for 2024 and round the percentage answers to 1 decimal place.
