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

THORNTON COMPANY
Income Statements
	Year 4	Year 3
Sales	$200,900	$180,900
Cost of goods sold	142,300	120,300
Selling expenses	21,600	19,600
Administrative expenses	12,500	14,500
Interest expense	3,200	5,200
Total expenses	$179,600	$159,600
Income before taxes	21,300	21,300
Income taxes expense	6,300	3,800
Net income	$15,000	$17,500

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.