Exercise 13-3A (Algo) Horizontal and vertical analysis LO 13-1 Income statements for Perez Company for Year 3 and Year 4 follow: PERET COMPANY Income Statements Year 4 Sales 5201,800 Cost of good old 142,900 Selling expenses 21,000 Administrative expenses 12,100 Interest expenso 3,900 Total expenses $179,900 Income before taxes 21,900 Income taxes expense 6.500 Net Income $ 15,400 Year 3 $181,800 120,900 19,000 14,100 5,900 $159,900 21,900 3.800 $ 18, 100 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 answers to 1 decimal place. (I., 0.234 should be entered as 23.4).) PEREZ COMPANY Horizontal Analysis of Income Statements 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 answers to 1 decimal place, (1.0, 0.234 should be entered as 23.4).) PEREZ 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) % 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 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, (1.0, 0.234 should be entered as 23,4).) PEREZ COMPANY Vertical Analysis of Income Statements Percentage of Percentage of Sales Year 4 Sales Year 3 Sales % % Cost of goods sold Solling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income % %