Income statements for Campbell Company for Year 3 and Year 4 follow:

CAMPBELL COMPANY Income Statements
	Year 4				Year 3
Sales	$	201,100			$	181,100
Cost of goods sold		143,900				121,900
Selling expenses		21,800				19,800
Administrative expenses		12,600				14,600
Interest expense		3,200				5,200
Total expenses	$	181,500			$	161,500
Income before taxes		19,600				19,600
Income taxes expense		6,500				3,100
Net income	$	13,100			$	16,500

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.

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).) CAMPBELL COMPANY Horizontal Analysis of Income Statements Percentage Change over Year 3 Sales Cost of goods sold Selling expenses Administrative expenses nterest expense Total expenses Income before taxes Income taxes expense Net income (loss) RequiredARequired 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).) CAMPBELL COMPANY Vertical Analysis of Income Statements Percentage of Sales Year 4 Percentage of Sales Year 3 Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income