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Income statements for Finch Company for Year 3 and Year 4 follow. FINCH COMPANY Income Statements Year 4 Sales Cost of goods sold Selling expenses
Income statements for Finch Company for Year 3 and Year 4 follow. FINCH COMPANY Income Statements Year 4 Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income $200,200 142,900 21,800 12,800 3,700 $181,200 19,500 5,700 $ 13,800 Year 3 $180, 700 129,900 19,800 14,800 5,700 $161,200 19,500 3,200 $ 16,300 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, 0.234 should be entered as 23.4).) FINCH COMPANY Horizontal Analysis of Income Statements Percentage Change over Year3 Sales 1 % Cost of goods sold Selling expenses L E Administrative expenses Interest expense Total expenses Income before tres Income taxes expense Net income (los) Required Required A Required 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. (.e., 0.234 should be entered as 23.0) FINCH COMPANY Vertical Analysis of Income Statements Percentage of Percentage of Sales Year 4 Sales Year 3 Sales Cost of goods sold Seling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income % E
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