Income statement for Gaidar Company for 2014 and 2015 follow:

GAIDAR COMPANY Income Statement
	2015			2014
Sales	$	201,300		$	181,300
Cost of goods sold		142,800			120,800
Selling expenses		21,600			19,600
Administrative expenses		12,700			14,700
Interest expense		3,100			5,100
Total expenses	$	180,200		$	160,200
Income before taxes		21,100			21,100
Income taxes expense		5,800			3,400
Net income	$	15,300		$	17,700

Required

a.

Perform a horizontal analysis, showing the percentage change in each income statement component between 2014 and 2015. (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).) Gaidar Company Horizontal Analysis of Comparative income Statement Percentage Change over 2014 Sales Cost of goods sold Selling expenses Administrative expenses Interest Expense Total expenses

Income before taxes Income taxes expense Net income (loss)

b.	Perform a vertical analysis, showing each income statement component as a percent 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).)

Gaidar Company

Vertical Analysis of Comparative Income Statement Percentage of Sales 2014 Percentage of Sales 2014

Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expeses Income before taxes Income taxes expense Net income