Income statements for Burch Company for Year 3 and Year 4 follow: BURCH COMPANY Income Statements Year 3 S240,000 S200,000 124,000 20,000 18,000 8,000 $225,500 170,000 30,000 3,000 $ 13,300 27,000 Year4 Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income 180,000 26,000 12,000 7,500 14,500 1,200 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. 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 answers to 1 decimal place. (i.e., .234 should be entered as 23.4).) BURCH COMPANY Horizontal Analysis of Income Statements Percentage Change over Year 3 20.01 % Sales Cost of goods sold Selling expenses Administrative expenses Interest expense 45.2 30.0 (33.3) (6.3) Total expenses Income before taxes (51.7) 60.0 Income taxes expense Net income (loss)