Income before taxes Income taxes expense Net income Required 180,600 160,600 21,000 21,000 6,200 $14,800 3,200 $17,800 a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Yeam 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. Note: Percentages may not add exactly due to rounding. Round your answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4). ADAMS COMPANY Vertical Analysis of Income Statements Sales Cost of goods sold Selling expenses Interest expense Administrative expenses Total expenses Income before taxes Income taxes expense Net income Percentage of Percentage of Sales Year 4 Sales Year 3 % % % % < Required A Required B Income before taxes Income taxes expense Net income. Required 21,000 6,200 21,000 3,200 $ 17,800 $ 14,800 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. Note: Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (1.e., 0.234 should be entered as 23.4). ADAMS COMPANY Horizontal Analysis of Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Percentage Change over Year 3 % Income before taxes Income taxes expense Net income (loss) % Required A Required B > Income statements for Adams Company for Year 3 and Year 4 follow: ADAMS COMPANY Income Statements Year 4 Year 3 Sales $201,600 $ 181,600 Cost of goods sold 143,500. 121,500 Selling expenses 20,900 18,900 Administrative expenses 12,900 14,900 Interest expense 3,300 5,300 Total expenses 180,600 160,600 Income before taxes 21,000 21,000 6,200 3,200 $ 14,800 $ 17,800 come taxes expense Net income 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. 4. Required A Required B Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year Note: Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4). ADAMS COMPANY Horizontal Analysis of Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Percentage Change over Year 3 %