Income statements for Baird Company for Year 3 and Year 4 follow: BAIRD COMPANY Income statements Year 4 Salon $200,500 Cost of goods sold 142.400 Selling expenses 20,900 Administrative expenses 12,600 Interest expense 3,900 Total expenses $179,800 Income before taxes 20,700 Income tax expense 5,000 Net Income $ 15,700 Year 3 $180,500 120.400 18.900 14,600 5,900 $159.800 20,700 3.500 $ 17,200 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 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. (l.e., 0.234 should be entered as 23.4).) BAIRD COMPANY Horizontal Analysis of Income Statements Percentage Chango over Year 3 Sales % Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (los) % Required > 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 percentage 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 Sales Year 4 Sales Yoar 3 Sales % Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense % % Net income