Reagin Company reported the following operating results for 2015 and 2014.

Required
Round percentages to one decimal point.
a. Perform a horizontal analysis, showing the percentage change in each income statement component between 2015 and 2014.
b. Perform a vertical analysis, showing each income statement component as a percent of sales for eachyear.

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2015 2014 Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income $500,000 265,000 30,500 38,000 14,000 347,500 152,500 38,500 $114,000 $480,000 259,200 28,800 33,600 16,800 338,400 141,600 35,400 $106,200