Income statements for Vernon Company for Year 3 and Year 4 follow: 23 Sales Cost of goods sold Selling expenses VERNON COMPANY Income Statements Year 4 $201,100 Year 3 $181,100 142,300 120,300 20,300 18,300 12,300 14,300 3,100 5,100 $178,000 $158,000 23,100 5,400 23,100 $ 17,700 3,200 $ 19,900 Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income Required 01:55 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. od Required A Required B 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).) VERNON COMPANY Horizontal Analysis of Income Statements Sales Cost of goods sold Selling expenses Administrativa avance Percentage Change over Year 3 % TERAVIT UUMEANT Horizontal Analysis of Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) Percentage Change over Year 3 % % Required A Required B Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. (Percen may not add exactly due to rounding. Round your percentage answers to 1 decimal place. (i.e., 0.234 should be entere 23.4).) VERNON COMPANY Vertical Analysis of Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income Percentage of Percentage of Sales Year 4 Sales Year 3 % % % %