Exercise 13-3A Horizontal and vertical analysis LO 13-1 Income statements for Gibson Company for Year 3 and Year 4 follow: GIBSON COMPANY Income Statements Year 4 Year 3 Sales $201,300 $181,300 Cost of goods sold 143,200 121,200 Selling expenses 21,400 19,400 Administrative expenses 12,200 14,200 Interest expense 3,700 5,700 Total expenses $180,500 $160, 500 Income before taxes 20,800 20,800 Income taxes expense 6,800 3,100 Net income $ 14,000 $ 17,700 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. (.e., 234 should be 19 A Drou 1 of 2 Next > Help 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. (.e., 234 should be entered as 23.4).) GIBSON COMPANY Horizontal Analysis of Income Statements Porcentage 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)