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Income statements for Finch Company for Year 3 and Year 4 follow: FINCH COMPANY Income Statements Sales Year 4 $201,600 Year 3 $181,600 Cost of
Income statements for Finch Company for Year 3 and Year 4 follow: FINCH COMPANY Income Statements Sales Year 4 $201,600 Year 3 $181,600 Cost of goods sold 142,200 120,200 Selling expenses 20,500 18,500 Administrative expenses 12,400 14,400 Interest expense 3,500 5,500 Total expenses Income before taxes Income taxes expense Net income $ 16,100 $ 20,000 $178,600 $158,600 23,000 6,900 23,000 3,000 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 percentage answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) 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 percentage answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) FINCH COMPANY Horizontal Analysis of Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) Percentage Change over Year 3 % % Required A Required B > 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 percentage answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) Sales FINCH COMPANY Vertical Analysis of Income Statements Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income Percentage of Percentage of Sales Year 4 Sales Year 3 % % % < Required A % Required B
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