Income statements for Walton Company for Year 3 and Year 4 follow. WALTON COMPANY Income Statements Year 4 Sales $201,800 Cost of goods sold 142,100 Selling expenses 20,900 Administrative expenses 12,400 Interest expense 3,400 Total expenses $178,800 Income before taxes 23,000 Income taxes expense 5,200 Net income $17,800 Year 3 $181,800 120,100 18,900 14,400 5,400 $ 158,800 23,000 3,300 $19,700 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. 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. (i.e., 0.234 should be entered as 23.4).) WALTON COMPANY Horizontal Analysis of Income Statements Percentage Change over Year 3 Sales % Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) % income statements for walton company for year 3 ana Year 4 TONIOW. WALTON COMPANY Income Statements Year 4 Sales $ 201,800 Cost of goods sold 142, 100 Selling expenses 20,900 Administrative expenses 12,400 Interest expense Total expenses $178,800 Income before taxes 23,000 Income taxes expense 5, 200 Net income $17,800 3,400 Year 3 $181,800 120,100 18,900 14,400 5, 400 $ 158,800 23,000 3,300 $19,700 Required a. Perform 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. , a . Complete this question by entering your answers in the tabs below. 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., 0.234 should be entered as 23.4).) WALTON COMPANY Vertical Analysis of Income Statements Percentage of Percentage of Sales Year 4 Sales Year 3 Sales % % Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income % %