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

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

Income statements for Gibson Company for Year 3 and Year 4 follow: GIBSON COMPANY Income Statements Year 4 Sales $2e1,600 Cost of goods sold 142,400 Selling expenses 21,300 Administrative expenses 12,300 Interest expense 3,480 Total expenses $179,480 Income before taxes 22,200 Incone taxes expense 6, see Net income $ 15,700 Year 3 $181,600 120,400 19,308 14,300 5,400 $159,480 22,200 3,700 $ 18,500 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 to Year eBook Required A Required B Print Perform a horizontal analysis, showing the percentage change in eac 4. (Negative answers should be indicated by a minus sign. Round you should be entered as 23.4).) References GIBSON 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) % eek 14 Homework 1 Required a. Perform a horizontal analysis, showing the percentage change in each income su b. Perform a vertical analysis, showing each income statement component as a per Complete this question by entering your answers in the tabs below. eBook Required A Required B Print Perform a vertical analysis, showing each income statement component as a percentage may not add exactly due to rounding. Round your percentage answers to 1 decimal plac 23.4).) References GIBSON COMPANY Vertical Analysis of Income Statements Percentage of Percentage of Sales Year 4 Sales Year 3 Salos % Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income % %