Income statements for Solomon Company for Year 3 and Year 4 follow.

SOLOMON COMPANY
Income Statements
	Year 4	Year 3
Sales	$200,700	$180,700
Cost of goods sold	142,800	120,800
Selling expenses	21,500	19,500
Administrative expenses	12,700	14,700
Interest expense	3,000	5,000
Total expenses	$180,000	$160,000
Income before taxes	20,700	20,700
Income taxes expense	5,300	3,200
Net income	$15,400	$17,500

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.

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. (i.e., 0.234 should be entered as 23.4).)

SOLOMON COMPANY
Horizontal Analysis of Income Statements
	Percentage Change over Year 3
Sales	11.0	%
Cost of goods sold	18.2
Selling expenses	10.4
Administrative expenses	14.1
Interest expense	(37.7)
Total expenses	12.5
Income before taxes	0.0
Income taxes expense	90.9
Net income (loss)		%

SOLOMON COMPANY
Vertical Analysis of Income Statements
	Percentage of Sales Year 4		Percentage of Sales Year 3
Sales	100.0	%	100.0	%
Cost of goods sold
Selling expenses
Administrative expenses
Interest expense
Total expenses
Income before taxes
Income taxes expense
Net income		%		%