Exercise 13-3A Horizontal and vertical analysis LO 13-1 ncome statements for Rooney Company for 2018 and 2019 follow: ROONEY COMPANY Income Statements 2019 2018 $200,800 143,000 20,200 12,800 Sales $180,800 Cost of goods sold Selling expenses Administrative expenses 121,000 18,200 14,800 5,400 $159,400 21,400 3,500 $ 17,900 Interest expense 3,400 Total expenses $179,400 Income before taxes 21,400 6,400 Income taxes expense $15,000 Net income Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between 2018 and 2019. . 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 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 statement component between 2018 and 2019. (Negative answers should be indicated by a minus sign. Round your answers to as 23.4).) decimal place. (i.e., .234 should be entered ROONEY 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) % Complete this question by entering your answers in the tabs below. Required B Required A 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. (i.e., .234 should be entered as 23.4).) ROONEY COMPANY Vertical Analysis of Income Statements Percentage of Sales 2019 Percentage of Sales 2018 Sales % % Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense % Net income Required A Required B