Income statements for Solomon Company for Year 3 and Year 4 follow SOLOMON COMPANY Income Statements Sales Year 4 $200,500 Year 3 $180,800 Cost of goods sold 143,800 121,800 Selling expenses 20,000 18,800 Administrative expenses 13,000 15,000 Interest expense. 3,400 5,400 Total expenses $181,000 $161,000 Income before taxes Income taxes expense Net Income 19,800 5,900 $13,900 19,800 3,300 $16,500 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. pped Complete this question by entering your answers in the tabs below. bok ces 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 answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) SOLOMON COMPANY Vertical Analysis of Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes, Income taxes expense Net income Percentage of Percentage of Sales Year 4 Sales Year 3 % Skipped Complete this question by entering your answers in the ta Required A Required B. eBook Hint References Perform a horizontal analysis, showing the percentage change in each income statement compone 4. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place entered as 23.4).) SOLOMON COMPANY Horizontal Analysis of Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) Percentage Change over Year 3 % %