Exercise 9-3 Horizontal and vertical analysis LO 9-1 Income statements for Fanning Company for 2018 and 2019 follow. FANNING COMPANY Income Statements 2019 Sales $ 201,7ee Cost of goods sold 143, eee Selling expenses 28,900 Administrative expenses 12,300 Interest expense 3,100 Total expenses $179,300 Income before taxes 22.400 Income taxes expense 6,300 Net Income 2018 $181,700 121, 18.900 14,300 5.100 $ 159,38 22.408 3.600 $ 16,100 $ 18,800 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 statement component between 2018 and 2019. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. i.e., .234 should be entered as 23.4).) FANNING 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 > 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 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).) FANNING 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 I Income before taxes Income taxes expense Net income Required A Required B >