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

FRANKLIN COMPANY
Income Statements
	Year 4	Year 3
Sales	$202,000	$182,000
Cost of goods sold	142,500	120,500
Selling expenses	20,700	18,700
Administrative expenses	12,100	14,100
Interest expense	3,800	5,800
Total expenses	$179,100	$159,100
Income before taxes	22,900	22,900
Income taxes expense	6,500	3,400
Net income	$16,400	$19,500

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.