Income statements for Vernon Company for 2018 and 2019 follow:

VERNON COMPANY Income Statements
	2019				2018
Sales	$	201,500			$	181,500
Cost of goods sold		142,900				120,900
Selling expenses		21,200				19,200
Administrative expenses		12,600				14,600
Interest expense		3,400				5,400
Total expenses	$	180,100			$	160,100
Income before taxes		21,400				21,400
Income taxes expense		5,200				3,800
Net income	$	16,200			$	17,600

Required

1. Perform a horizontal analysis, showing the percentage change in each income statement component between 2018 and 2019.

2. 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 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)		%

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 Sales 2019		Percentage of Sales 2018
Sales		%		%
Cost of goods sold
Selling expenses
Administrative expenses
Interest expense
Total expenses
Income before taxes
Income taxes expense
Net income		%		%