Income statements for Gibson Company for Year 3 and Year 4 follow. GIBSON COMPANY Income Statements Year 4 Sales $201,800 Cost of goods sold 143,200 Selling expenses 21,900 Administrative expenses 12,200 Interest expense 2.000 Total expenses $180,300 Income before taxes 21,500 Income taxes expenso 5,500 Net income $ 16,000 Year 3 $181,300 121,200 19,900 14,200 5.000 $160,300 21,500 2,500 $ 18,000 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).) 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) % Complete this question by entering your answers in the tabs below. Required A Required B 1 % 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. (.e., 0.234 should be entered as 23.4).) GIBSON COMPANY Vertical Analysis of Income Statements Percentage of Porcentage 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 %