THORNTON COMPANY Income Statements Year 4 Sales $ 201,600 Cost of goods sold 142,600 Selling expenses 20,300 Administrative expenses 12,300 Interest expense 3,100 $178,300 Income before taxes 23,300 Income taxes expense 6,500 Net income $ 16,800 Year 3 $181,600 120,600 18,300 14,300 5, 100 $ 158,300 Total expenses 23,302 3,400 $ 19,900 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. (i.e., 0.234 should be entered as 23.4).) THORNTON 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) %