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

GIBSON COMPANY Income Statements
	Year 4				Year 3
Sales	$	200,000			$	180,000
Cost of goods sold		143,400				121,400
Selling expenses		22,000				20,000
Administrative expenses		12,900				14,900
Interest expense		3,800				5,800
Total expenses	$	182,100			$	162,100
Income before taxes		17,900				17,900
Income taxes expense		5,400				3,500
Net income	$	12,500			$	14,400

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.