Income statements for Puppy Daycare Company for Year 3 and Year 4 follow: Items Sales Cost of goods sold Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Year 4 $133,000 67,000 17,000 26,000 110,000 23,000 4,600 $ 18,400 Year 3 $117,200 40,800 20,000 24,000 84,800 32,400 8,100 $24,300 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.

Income statements for Puppy Daycare 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