UICON Exercise 9-3 Horizontal and vertical analysis LO 9-1 Income statements for Finch Company for 2018 and 2019 follow: FINCH COMPANY Income Statements 2019 Sales $ 200,200 Cost of goods sold 142,000 Selling expenses 21,500 Administrative expenses 12,300 Interest expense 3,700 Total expenses $ 179,500 Income before taxes 20,700 Income taxes expense 6,800 Net income $ 13,900 2018 $180,200 120,000 19,500 14,300 5,700 $ 159,500 20,700 3,500 $ 17,200 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between 2018 and 2019. 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 2018 and 2019. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (i.e., .234 should be entered as 23.4).) FINCH 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) 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., .234 should be entered as 23.4).) FINCH 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