Income statements for Walton Company for Year 3 and Year 4 follow. WALTON COMPANY Income Statements Year 4 Year 3 Sales $202,000 $182,000 Cost of goods sold 142,500 120,500 Selling expenses 21,700 19,700 Administrative expenses 12,700 14,700 Interest expense 3,800 5,800 Total expenses $180,700 $160,700 Income before taxes 21,300 21,300 Income taxes expense 6,100 3,100 Net income $15,200 $18,200 Required Perform a horizontal analysis, showing the percentage change in each income statement component b