Exercise 9-3 Horizontal and vertical analysis LO 9-1

Income statements for Munoz Company for 2018 and 2019 follow:

MUNOZ COMPANY Income Statements
	2019				2018
Sales	$	201,200			$	181,200
Cost of goods sold		143,100				121,100
Selling expenses		21,800				19,800
Administrative expenses		12,700				14,700
Interest expense		3,300				5,300
Total expenses	$	180,900			$	160,900
Income before taxes		20,300				20,300
Income taxes expense		6,800				3,300
Net income	$	13,500			$	17,000

Required

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.