Income statements for Munoz Company for Year 3 and Year 4 follow: MUNOZ COMPANY Income Statements Year 4 Year 3 Sales $200,300 $180,300 Cost of goods sold 143,200 121,200 Selling expenses 21,300 19,300 Administrative expenses 12,500 14,500 Interest expense 3,800 5,800 Total expenses $180,800 $160,800 Income before taxes 19,500 19,500 Income taxes expense 6,000 3,400 Net income $ 13,500 $ 16,100 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. (i.e., 0.234 should be entered as 23.4).) MUNOZ 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) (Required A Required B > Income statements for Munoz Company for Year 3 and Year 4 follow: MUNOZ COMPANY Income Statements Year 4 Year 3 Sales $200, 300 $180,300 Cost of goods sold 143,200 121,200 Selling expenses 21,300 19,300 Administrative expenses 12,500 14,500 Interest expense 3,800 5,800 Total expenses $180,800 $160,800 Income before taxes 19,500 19,500 Income taxes expense 6,000 3,400 Net income $ 13,500 $ 16,100 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 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. (i.e., 0.234 should be entered as 23.4).) MUNOZ COMPANY Vertical Analysis of Income Statements Percentage of Percentage 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 % % (Required A Required B