WALTON COMPANY Income Statements Year 4 Year 3 Sales $201,500 $181,500 Cost of goods sold 143,500 121,500 Selling expenses 21,900 19,900 Administrative expenses 12,500 14,500 Interest expense 3,100 5,100 Total expenses 181,000 161,000 Income before taxes 20,500 20,500 5,700 3,700 $ 14,800 $ 16,800 Income taxes expense Net income 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 vertical analysis, showing each income statement component as a percentage of sales for each year. Note: Percentages may not add exactly due to rounding. Round your answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4). Sales WALTON COMPANY Vertical Analysis of Income Statements 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 % % % %