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

FRANKLIN COMPANY Income Statements
	Year 4	Year 3
Sales	$ 201,700	$ 181,700
Cost of goods sold	143,400	121,400
Selling expenses	21,300	19,300
Administrative expenses	12,400	14,400
Interest expense	3,100	5,100
Total expenses	180,200	160,200
Income before taxes	21,500	21,500
Income taxes expense	6,900	3,500
Net income	$ 14,600	$ 18,000

Required

Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4.

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. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. Note: 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). 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. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. Note: Percentages may not add exactly due to rounding. Round your answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4)