income statements for Vernon Company for Year 3 and Year 4 follow. VERNON COMPANY Income Statements Year 4 Year 3 Sales $201,000 $181,000 Cost of goods sold 142,500 120,500 Selling expenses 21,100 19,100 Administrative expenses 12,100 14,100 Interest expense 3,800 5,800 Total expenses $179,500 $159,500 Income before taxes Income taxes expense Net income 21,500 6,200 21,500 3,100 $ 15,300 $ 18,400 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year- 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 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 answers to 1 decimal place. (.e., 0.234 should be entered as 23.4).) VERNON COMPANY Horizontal Analysis of Income Statements Sales Cost of goods sold Percentage Change over Year 3 11.0 % 18.2