Income statements for Adams Company for Year 3 and Year 4 follow: ADAMS COMPANY Income Statements Sales Cost of goods sold Selling expenses Interest expense Administrative expenses Total expenses Income before taxes Income taxes expense Net income Year 41 Year 3 $201,500 $181,500 143,800 121,800 21,800 19,800 12,600 14,600 3,300 5,300 $181,500 $161,500 20,000 5,300 20,000 3,200 $ 14,700 $ 16,800 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Yea 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).) ADAMS COMPANY ADAMS 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 % % ADAMS COMPANY Vertical 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 Percentage of Sales Yr 4 Percentage of Sales Year 3 % % % %