Carver Inc. purchased

Income statements for Gibson Company for 2018 and 2019 follow: GIBSON COMPANY Income Statements 2019 Sales $200,800 Cost of goods sold 142,100 Selling expenses 20,500 Administrative expenses 12,800 Interest expense 3,300 Total expenses $178,700 Income before taxes 22,100 Income taxes expense 5,500 Net income $ 16,600 2018 $189,800 120,100 18,500 14,800 5,300 $158,700 22,100 3,900 $ 18,200 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between 2018 and 2019. b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. olo GIBSON COMPANY Horizontal Analysis of Income Statements Percentage Change over 2018 Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes I cost of goods sold Administrative expenses Income taxes expense C Net income (loss) olo GIBSON COMPANY Vertical Analysis of Income Statements Percentage of Percentage of Sales 2019 Sales 2018 Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income 1 TTT % %