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Income statements for Benson Company for Year 3 and Year 4 follow: BENSON COMPANY Income Statements Year 4 Sales $200,200 Cost of goods sold 143,400

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Income statements for Benson Company for Year 3 and Year 4 follow: BENSON COMPANY Income Statements Year 4 Sales $200,200 Cost of goods sold 143,400 Selling expenses 20,500 Administrative expenses 12,300 Interest expense 3,300 Total expenses $179,500 Income before taxes 20,700 Income taxes expense 6,600 Net income $ 14,100 Year 3 $180, 200 121,400 18,500 14,300 5,300 $159,500 20,700 4,000 $ 16,700 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. 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. (.e., 0.234 should be entered as 23.4).) BENSON COMPANY Horizontal Analysis of Income Statements Percentage Change over Year 3 Sales % Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) % 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 percentage answers to 1 decimal place. (1.e., 0.234 should be entered as 23.4).) BENSON COMPANY Vertical Analysis of Income Statements Percentage of Percentage of Sales Year 4 Sales Year 3 Sales % Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income %

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