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

STUART COMPANYIncome Statements Year 4Year 3Sales$200,200$180,200Cost of goods sold143,800121,800Selling expenses20,90018,900Administrative expenses12,20014,200Interest expense3,3005,300Total expenses$180,200$160,200Income before taxes20,00020,000Income taxes expense6,8003,800Net income$13,200$16,200

Required

1. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4.
2. 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 answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).)

STUART COMPANYVertical Analysis of Income Statements Percentage of Sales Year 4Percentage of Sales Year 3Sales100.0%100.0%Cost of goods sold Selling expenses10.5 10.4 Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income % %