Exercise 13-3A (Algo) Horizontal and vertical analysis LO 13-1 Income statements for Stuart Company for Year 3 and Year 4 follow: STUART COMPANY Incone Statenents Year 4 Year 3 Sales $201,400 $181,400 Cost of goods sold 142,900 120,900 Selling expenses 20,800 18,800 Administrative expenses 12, 100 14,100 Interest expense 3,500 5,5ee Total expenses $179,300 $159,300 Incone before taxes 22,100 22,100 Income taxes expense 5,200 3,800 Net incon $ 16,900 $ 18,300 snom 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 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 answers to 1 decimal place. ( 1.0.234 should be entered as 23.4).) STUART COMPANY Horizontal Analysis of income Statements AC Taw a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 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 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 answers to 1 decimal place. (1.e., 0.234 should be entered as 23.4).) STUART 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 % rices %