Exercise 13-3A (Algo) Horizontal and vertical analysis LO 13-1

Income statements for Campbell Company for Year 3 and Year 4 follow:

CAMPBELL COMPANY Income Statements
	Year 4				Year 3
Sales	$	201,600			$	181,600
Cost of goods sold		142,200				120,200
Selling expenses		20,100				18,100
Administrative expenses		13,000				15,000
Interest expense		3,200				5,200
Total expenses	$	178,500			$	158,500
Income before taxes		23,100				23,100
Income taxes expense		5,200				3,100
Net income	$	17,900			$	20,000

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.