Income statements for Franklin Company for Year 3 and Year 4 follow: FRANKLIN COMPANY Income Statements Year 4 Year 3 Sales $ 201,300 $ 181,300 Cost of goods sold 143,200 121,200 Selling expenses 20,500 18,500 Administrative expenses 12,400 14,400 Interest expense 3,900 5,900 Total expenses $ 180,000 $ 160,000 Income before taxes 21,300 21,300 Income taxes expense 5,600 3,500 Net

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.