nalysis LO 13-1 Income statements for Perez Company for Year 3 and Year 4 follow PEREZ COMPANY Income Statements Year 4 Sales $201,500 Cost of goods sold 142,600 Selling expenses 20,600 Administrative expenses 12,800 Interest expense 3,000 Total expenses $179,800 Income before taxes 22,500 Income taxes expense 5,800 Net income $ 16,700 Year 3 $181,500 128,689 18,600 14,800 5,000 $159, eee 22,500 4,000 $ 18,500 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. N B M V - 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 Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. (Percentage may not add exactly due to rounding. Round your answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) % PEREZ 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 2 Band