Income Statements Year 4. Sales $200,900 Year 3 $180,900 Cost of goods sold 143,400 121,400 Selling expenses 21,000 19,000 Administrative expenses 13,000 15,000 Interest expense 3,900 5,900 Total expenses $181,300 $161,300 Income before taxes Income taxes expense Net income 19,600 5,400 $14,200 19,600 3,800 $ 15,800 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 percentage answers to 1 decimal place. (.e., 0.234 should be entered as 23.4).) STUART COMPANY 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 Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income 21,000 19,000 13,000 15,000 3,900 5,900 $181,300 $161,300 19,600 5,400 $14,200 19,600 3,800 $ 15,800 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 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 percentage answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) STUART 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 Sales Year 4 Percentage of Sales Year 3 %