Income statements for Thornton Company for Year 3 and Year 4 follow: THORNTON COMPANY Income Statements Year 4 Sales $200,600 Cost of goods sold 143,800 Selling expenses 21,200 Administrative expenses 12,800 Interest expense 3,100 Total expenses $180, 900 Income before taxes 19, 700 Income taxes expense 5,600 Net income $ 14,100 Year 3 $180,600 121,800 19,200 14,800 5,100 $160, 900 19,700 3,400 $ 16,300 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. 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 percentage answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) THORNTON COMPANY Horizontal Analysis of Income Statements Percentage Change over Year 3 Sales % Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) % THORNTON COMPANY Vertical Analysis of Income Statements Percentage of Percentage of Sales Year 4 Sales Year 3 Sales % % Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income % %