Exercise 9-3 Horizontal and vertical analysis LO 9-1 Income statement for Gaidar Company for 2014 and 2015 follows:

a. Perfrom a horizontal analysis, showing the percentage change in each income statement component between 2014 and 2015. b. Peform a vertical analysis, showing each income statement component as a percent of sales for each year.

GAIDAR COMPANY Income Statement

	2014	2015
Sales	300,000	250,000
Cost of Goods Sold	192,000	150,000
Selling Expenses	30,000	24,000
Adminstrative Expenses	15,000	20,000
Interest Expense	6,000	8,000
Total Expense	243,000	202,000
Income Before Taxes	57,000	48,000
Income Taxes Expense	14,000	12,000

Net Income 43,000 | 36,000 (belongs in the table above).