Exercise 9-3 Horizontal and vertical analysis Income statements for Gaidar Company for 2014 and 2015 follow. Required 2015 2014 Sales $300,000 $250,000 Cost of goods sold 192,000 150,000 Selling expenses 30,000 24,000 Administrative expenses 15,000 20,000 Interest expense 6,000 8,000 Total expenses $243,000 $202,000 Income before taxes 57,000 48,000 Income taxes expense 14,000 12,000 Net income $ 43,000 $ 36,000 Round all percentages to one decimal point. a. Perform a horizontal analysis, showing the percentage change in each income statement component between 2014 and 2015. b. Perform a vertical analysis, showing each income statement component as a percent of sales for each year.