Income statements for Rooney Company for Year 3 and Year 4 follow ROONEY COMPANY Income Statements Year 4 Sales $200,000 Cost of goods sold 142,300 Selling expenses 20,500 Administrative expenses 12,300 Interest expense 3.900 Total expenses $179.000 Income before taxes 21,000 Income taxes expense 5.500 Net income $ 15,500 Year? $150,000 120,300 18,500 14,300 5,900 $159,000 21,000 3.500 $ 17,500 Required o. 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, Answer is complete but not entirely correct. 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 (Negative answers should be indicated by a minus sign. Round your percentage answers to 1 decimal place. (.e., 0.234 should be entered as 23.6.) ROONEY COMPANY Horizontal Analysis of Income Statements Percentage Change over Year 3 Sales 11.0 Cost of goods sold 18.13 Answer is complete but not entirely correct. 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. (le, 0.234 should be entered as 23.4:). ROONEY COMPANY Horizontal Analysis of Incorne Statements Percentage Change over Year 3 Sales 11.0% Cost of goods sold 181 Selling expenses 101 Administrative expenses (140) Interest expense (35.1) Total expenses 124 Income before taxes 00 Income taxes expense 50.0 Net income (oso) (117) Kogud Required B X Check my work mode : This shows what is correct or incorrect for the work Requirea a. Perform a horizontal analysis, showing the percentage change in each income statement component between b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each yea Answer is complete but not entirely correct. 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. (Percer may not add exactly due to rounding. Round your percentage answers to 1 decimal place, (1.0, 0.234 should be entere 23.4).) ROONEY COMPANY Vertical Analysis of Income Statements Percentage of Percentage of Sales Year 4 Sales Year 3 Sales 100.0 % 100.0 % Cost of goods sold 11.30 670 X Selling expenses 10 8 X 11.0 X Administrative expenses 79 Interest expense 1.8% 3.1 X Total expenses 90.0 % 89.0 X Income before taxes 10.0 X 11.1 x Income taxes expense 2.8 21 % Net Income 7.1 % 90 % 61