Income statements for Burch Company for Year 3 and Year 4 follow: BURCH COMPANY Income Statements Year 3 $240,000 200,000 124,000 20,000 18,000 7.5008,000 $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 180,000 26,000 12,000 14,500 1.200 Net income 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 year 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 answers to 1 decimal place. (i.e., .234 should be entered as 23.4).) BURCH COMPANY Vertical Analysis of Income Statements Percentage of Sales Year 3 Percentage of Sales Year 4 Sales Cost of goods sold Selling expenses Administrative expenses Interest expense 1000 % 100.01 % 75.0 10.8 5.0 62.0 10.0 9.0 4.0 85.0 15.0 94.0 6.0 0.5 Total expenses Income before taxes Income taxes expense Net income K Required A RequiredB