Income statements for Franklin Company for Year 3 and Year 4 follow: FRANKLIN COMPANY Income Statements Year 41 Sales $200,300 Year 3 $180,300 Cost of goods sold 143,700 121,700 Selling expenses 20,500 18,500 Administrative expenses 12,400 14,400 Interest expense 3,800 5,800 Total expenses $180,400 $160,400 Income before taxes Income taxes expense. Net income 19,900 6,000 19,900 3,200 $ 13,900 $ 16,700 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 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. (ie., .234 should be 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. (I.e., .234 should be entered as 23.4).) FRANKLIN COMPANY Horizontal Analysis of Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxos Income taxes expense Net income (loss) Percentage Change over Year 3 % % Required A Required > 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).) FRANKLIN COMPANY Vertical Analysis of Income Statements Percentage of Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income Percentage of Sales Year 4 Sales Year 3 % %