Income statements for Burch Company for Year 3 and Year 4 follow: BURCH COMPANY Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income Year 4 $ 240,000 180,000 26,000 12,000 7,500 225,500 14,500 1,200 $ 13,300 Required A Required B 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. Year 3 $ 200,000 124,000 20,000 18,000 8,000 170,000 30,000 3,000 $ 27,000 Complete this question by entering your answers in the tabs below. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. Note: Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4). BURCH COMPANY Horizontal Analysis of Income Statements Percentage Change

Income statements for Burch Company for Year 3 and Year 4 follow: Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each yeat. Complete this question by entering your answers in the tabs below. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. Note: Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place: (1.e, 0.234 should be entered as 23,4 ). Complete this question by entering your answers in the tabs below. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. Note: Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (I.e., 0.234 should be entered as 23.4)