Exercise $13-3$A $($Algo$)$ Horizontal and vertical analysis LO $13-1$

Income statements for Adams Company for Year $3$ and Year $4$ follow:

$\backslash$table$[[\backslash$table$[[$ADAMS COMPANY$],[$Income Statements$]]],[,$Year $4,$Year $3,],[$Sales$,$$$201,000,$$$181,000,],[$Cost of goods sold,$143,500,121,500,],[$Selling expenses,$20,100,18,100,],[$Administrative expenses,$12,700,14,700,],[$Interest expense,$3,500,5,500,],[$Total expenses,$179,800,159,800,],[$Income before taxes,$21,200,21,200,],[$Income taxes expense,$6,500,3,800,],[$Net income,$$14,700,$$$17,400,]]$

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