Exercise 9-3A (Algo) Horizontal and vertical analysis LO 9-1 Income statements for Rooney Company for Year 3 and Year 4 follow. ROONEY COMPANY Income Statements Sales Year 4 $200,600 Year 3 $180,600 Cost of goods sold 144,000 122,000 Selling expenses 20,800 18,800 Administrative expenses 12,800 14,800 Interest expense 3,500 5,500 Total expenses $181,100 $161,100 Income before taxes Income taxes expense Net income 19,500 6,400 19,500 3,500 $ 13,100 $ 16,000 ces Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. 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 Year 3 and Year 4. (Negative answers should be indicated by a minus sign. Round your percentage answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) ROONEY COMPANY Horizontal Analysis of Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) Percentage Change over Year 3 % Required A Required B >