Alpena Company reported the following operating results for 2019 and 2018.
_________________________________2019 2018
Sales.......................................... $250,000...................... $240,000
Cost of goods sold........................... 132,500........................ 129,600
Selling expenses.................................15,250......................... 14,400
Administrative expenses...................... 19,000......................... 16,800
Interest expense..................................7,000........................... 8,400
Total expenses.................................173,750....................... 169,200
Income before taxes........................... 76,250........................ 70,800
Income taxes expense......................... 19,250......................... 17,700
Net income....................................$ 57,000.......................$ 53,100
Required
Round percentages to one decimal point.
a. Perform a horizontal analysis, showing the percentage change in each income statement component between 2019 and 2018.
b. Perform a vertical analysis, showing each income statement component as a percent of sales for each year.