Exercise 13-3A Horizontal and vertical analysis LO 13-1 Income statements for Thornton Company for 2018 and 2019 follow: THORNTON COMPANY Income Statements 2019 2018 Sales $201,700 $181,700 Cost of goods sold 142,500 120,500 Selling expenses 20,000 18,000 Administrative expenses 12,600 14,600 Interest expense 3,900 5,900 Total expenses $179,000 $159,000 Income before taxes 22,700 22,700 Income taxes expense 6,500 3,600 Net income $ 16,200 $ 19,100 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between 2018 and 2019. 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 state (Negative answers should be indicated by a minus sign. Round your answers to 1 d as 23.4).) THORNTON COMPANY Horizontal Analysis of Income Statements Percentage Change over 2018 (Negative answers should be indicated by a minus sign. Round as 23.4).) THORNTON COMPANY Horizontal Analysis of Income Statements Percentage Change over 2018 Sales % Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) % Required A Required B Perform a vertical analysis, showing each income statement com may not add exactly due to rounding. Round your answers to 10 THORNTON COMPANY Vertical Analysis of Income Statements Percentage of Percentage of Sales 2019 Sales 2018 Sales % % Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income % %