Income statements for Franklin Company for Year 3 and Year 4 follow: FRANKLIN COMPANY Income Statements Year 4 Sales $200,700 Cost of goods sold 143,800 Selling expenses 20,600 Administrative expenses 12,200 Interest expense 3,300 Total expenses $179,900 Income before taxes 20,800 Income taxes expense 5,900 Net income $ 14,900 Year 3 $180,700 121,800 18,600 14,200 5,300 $159,900 20,800 3,900 $ 16,900 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. (le, 0,234 should be entered as 23.4).) FRANKLIN COMPANY Horltontal Analysis of Income Statements Percentage Change over Year 3 Sales % 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. (.e., 0.234 should be entered as 23.4).) FRANKLIN 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 percentage answers to 1 decimal place. (l.e., 0.234 should be entered as 23.4).) FRANKLIN 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 %