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Income statements for Fanning Company for Year 3 and Year 4 follow: FANNING COMPANY Income Statements Year 4 Sales $200,300 Cost of goods sold 143,100

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Income statements for Fanning Company for Year 3 and Year 4 follow: FANNING COMPANY Income Statements Year 4 Sales $200,300 Cost of goods sold 143,100 Selling expenses 21,800 Administrative expenses 13,000 Interest expense 3,100 Total expenses $181,000 Income before taxes 19,300 Income taxes expense 5,700 Net income $ 13,600 Year 3 $180,300 121,100 19,800 15,000 5, 100 $161,000 19.300 3,100 $ 16,200 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. (l.e., .234 should be entered as 23.4).) 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. (.e., .234 should be entered as 23.4).) FANNING COMPANY Horizontal Analysis of Income Statements Percentage Change over Year 3 Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) 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 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. (l. 234 should be entered as 23,4).) FANNING COMPANY Vertical Analysis of Income Statements Percentage of Percentage of Sales Year 4 Sales Year 3 Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income

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