Income statements for Stuart Company for Year 3 and Year 4 follow: STUART COMPANY Income Statements Sales Year 4 $201,000 Year 3 $181,000 Cost of goods sold 142,100 120,100 Selling expenses 21,600 19,600 Administrative expenses 12,400 14,400 Interest expense 3,600 5,600 Total expenses $179,700 $159,700 Income before taxes Income taxes expense Net income $ 16,200 $ 17,800 21,300 5,100 21,300 3,500 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. 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. (Percentages may not add exactly due to rounding. Round your percentage answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) Sales STUART COMPANY Vertical Analysis of Income Statements 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 % % % %