Income statements for Puppy Daycare Company for Year $3$ and Year $4$ follow:ItemsYear $4$Year $3$Sales$$125,000$$$110,000$Cost of goods sold$65,00040,000$Selling expenses$15,00018,000$Administrative expenses$24,00022,000$Total expenses$104,00080,000$Income before taxes$21,00030,000$Income tax expense$4,2007,500$Net income$ $16,800$$ $22,500$Required:Perform a horizontal analysis, showing the percentage change in each income statement component between Year $3$ and Year $4.$Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.