Required

1. Perform a horizontal analysis, showing the percentage change in each income statement component between 2018 and 2019.

2. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.

CAMPBELL COMPANY Income Statements 2019 Sales $ 201,500 Cost of goods sold 143,200 Selling expenses 20,300 Administrative expenses 12,600 Interest expense 3,100 Total expenses $179,200 Income before taxes 22,300 Income taxes expense 5,900 Net income $ 16,400 2018 $181,500 121,200 18,300 14,600 5,100 $159,200 22,300 3,200 $ 19,100 Perform a horizontal analysis, Showing the percentage Change In (Negative answers should be indicated by a minus sign. Round y as 23.4).) CAMPBELL COMPANY Horizontal Analysis of Income Statements Percentage Change over 2018 Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) CAMPBELL COMPANY Vertical Analysis of Income Statements Percentage of Percentage of Sales 2019 Sales 2018 Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income %