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

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.

JORDAN COMPANY Horizontal Analysis of Income Statements JORDAN COMPANY Vertical Analysis of Income Statements \begin{tabular}{|l|l|l|l|l|} \hline & \multicolumn{2}{|c|}{ Percentage of Sales Year 4 } & \multicolumn{2}{c|}{ Percentage of Sales Year 3 } \\ \hline Sales & & % & & % \\ \hline Cost of goods sold & & & & \\ \hline Selling expenses & & & & \\ \hline Administrative expenses & & & & \\ \hline Interest expense & & & & \\ \hline \multicolumn{1}{|c|}{ Total expenses } & & & & \\ \hline Income before taxes & & & & \\ \hline Income taxes expense & & & & \\ \hline \multicolumn{1}{|c|}{ Net income } & & & \\ \hline \hline \end{tabular}