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Income statements for Perez Company for Year 3 and Year 4 follow. PEREZ COMPANY Income Statements Year 4 Year 3 Sales $281,900 $181,900 Cost

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Income statements for Perez Company for Year 3 and Year 4 follow. PEREZ COMPANY Income Statements Year 4 Year 3 Sales $281,900 $181,900 Cost of goods sold 142,200 120,200 Selling expenses 21,900 19,900 Administrative expenses 12,800 14,800 Interest expense 3,500 5,500 Total expenses $180,400 $160,400 Income before taxes Income taxes expense Net income 21,500 6,200 21,500 3,800 $ 15,300 $ 17,700 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 answers to 1 decimal place. (e.. 0.234 should be entered as 23.4).) PEREZ COMPANY Horizontal Analysis of Income Statements Sales Cost of goods sold Percentage Change over Year 3 96

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