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Income statements for Munoz Company for Year 3 and Year 4 follow: MUNOZ COMPANY Income Statements Year 4 Year Sales $200,300 $180,300 Cost of goods sold 142,200 120,200 Selling expenses 20,900 18,900 Administrative expenses 12,700 14,700 Interest expense 2.800 5,800 Total expenses 5179,600 $159,600 Income before taxes 20,700 20,700 Income taxes expense 6,800 3.300 Net income $ 13,900 $ 17,400 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. Complete this question by entering your answers in the tabs below. Required A Required B Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. (Negative answers should be indicated by a minus sign. Round your percentage answers to 1 decimal place. (t.e., 0.234 should be entered as 23.4).) MUNOZ COMPANY Horizontal Analysis of income Statements Percentage Change over Year 3 -Sales Required A Required B Perform a horizontal analysis, showing the percentage change i 4. (Negative answers should be indicated by a minus sign. Rour should be entered as 23.4).) MUNOZ COMPANY Horizontal Analysis of Income Statements Percentage Change over Year 3 Sales % Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) % MUNOZ COMPANY Vertical Analysis of Income Statements Percentage of Percentage of Sales Year 4 Sales Year 3 Sales % % Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income % %