Income statements for Thornton Company for Year 3 and Year 4 follow. THORNTON COMPANY Income Statements Year 4 Sales $2e2, see Cost of goods sold 142, 4ee Selling expenses 21,9ee Administrative expenses 12,200 Interest expense 3, 10e Total expenses $179,6ee Income before taxes 22,400 Income taxes expense 5,400 Net income $ 17, eee Year 3 5182, Bee 128, 4ee 19,9ee 14, 20e 5,1ee $159,6ee 22,40e 3. See $ 18,9ee 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, 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).) 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 Required A Complete this question by entering your answers in the tabs below. Required A Required B Perform a horizontal analysis, showing the percentage change in each income statement component betv. 4. (Negative answers should be indicated by a minus sign. Round your percentage answers to 1 decimal should be entered as 23.4).) THORNTON COMPANY Horizontal Analysis of Income Statements Percentage Change over Year 3 Sales 96 Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) 96