Check my work 1 Problem: Module 4 Textbook Problem 1 Learning Objective: 4-1 Differentiate between horizontal and vertical analysis Income statements for Franklin Company for Year 3 and Year 4 follow: 1 points Hint Print FRANKLIN COMPANY Income Statements Year 4 Sales $ 201,900 Cost of goods sold 143,400 Selling expenses 20,900 Administrative expenses 12,200 Interest expense 4,000 Total expenses $180,500 Income before taxes 21,400 Income taxes expense 6,100 Net income $ 15,300 Year 3 $181,900 121,400 18,900 14,200 6,000 $160, 500 21,400 3,200 $ 18,200 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. (i.e., 0.234 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. (i.e., 0.234 should be entered as 23.4).) FRANKLIN COMPANY Horizontal Analysis of Income Statements Percentage Change over Year 3 Sales 11.1 % Cost of goods sold 18.1 Selling expenses Administrative expenses (14.1) Interest expense Total expenses 12.5 Income before taxes 0.0 Income taxes expense Net income (loss) % Return to question 1 Complete this question by entering your answers in the tabs below. 1 points Required A Required B Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. (Percentages may not add exactly due to rounding. Round your percentage answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) FRANKLIN 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 % %