Income statements for Vernon Company for 2018 and 2019 follow: VERNON COMPANY Income Statements 2019 Sales $ 201,400 Cost of goods sold 143,400 Selling expenses 20,500 Administrative expenses 12,500 Interest expense 3,500 Total expenses $ 179,900 Income before taxes 21,500 Income taxes expense 6,300 Net income $ 15,200 2018 $181,400 121,400 18,500 14,500 5,500 $ 159,900 21,500 3,200 $ 18,300 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between 2018 and 2019. b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. Required A Required B Perform a horizontal analysis, showing the percentage change in each income statement component between 2018 and 2019. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (i.e., .234 should be entered as 23.4).) VERNON COMPANY Horizontal Analysis of Income Statements Percentage Change over 2018 Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) 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., .234 should be entered as 23.4).). VERNON COMPANY Vertical Analysis of Income Statements Percentage of Percentage of Sales 2019 Sales 2018 Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income olo olo