Income statements for Baird Company for Year 3 and Year 4 follow: BAIRO COMPANY Income Statements Year 4 Sales $zei, 000 Cost of goods sold 142,800 Selling expenses 20,900 Administrative expenses 12,800 Interest expense 3,6ee Total expenses $180, 180 Income before taxes 20,900 Income taxes expense 5,800 Net income $ 15,100 Year 3 $181,000 120,800 18,900 14,800 5,600 $160,100 20,900 3,900 $ 17,00 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. Answer is complete but not entirely correct. 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. (Percentages may not add exactly due to rounding. Round your answers to 1 decimal place. (.e., 0.234 should be entered as 23.4).) BAIRD COMPANY Vertical Analysis of Income Statements Percentage of Percentage of Balus Year 4 Sales Year 3 Sales 100.0 % 1000 Cost of goods sold 710 60.13 Selling expenses 10.4 94% Administrative expenses 64 74% Interest expense 18 28 Total expenses 896 79.7 % Income before taxes 104 10.43 Income taxes expense 29 19 Net income 7.5 853 %