Income statements for Burch Company for 2018 and 2019 follow:

BURCH COMPANY Income Statements
	2019				2018
Sales	$	240,000			$	200,000
Cost of goods sold		180,000				124,000
Selling expenses		26,000				20,000
Administrative expenses		12,000				18,000
Interest expense		7,500				8,000
Total expenses	$	225,500			$	170,000
Income before taxes		14,500				30,000
Income taxes expense		1,200				3,000
Net income	$	13,300			$	27,000

Required

a. Perform a horizontal analysis, showing the percentage change in each income statement component between 2018 and 2019.

b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.