Income statements for Franklin Company for Year B and Year 4 follow: Sales Cost of goods...

 

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Income statements for Franklin Company for Year B and Year 4 follow: Sales Cost of goods sold Selling expenses FRANKLIN COMPANY Income Statements Year 4 $ 200,800 Year 3 $ 180, 800 143,900 121,900 22,000 20,000 12,900 14,900 4,000 6,000 182,800 162,800 18,000 6,000 18.000 3.400 $ 12,000 $ 14,600 Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net Income Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 b. Perform a vertical analysis, showing each Income statement component as a percentage of sales for each year. Income statements for Franklin Company for Year B and Year 4 follow: Sales Cost of goods sold Selling expenses FRANKLIN COMPANY Income Statements Year 4 $ 200,800 Year 3 $ 180, 800 143,900 121,900 22,000 20,000 12,900 14,900 4,000 6,000 182,800 162,800 18,000 6,000 18.000 3.400 $ 12,000 $ 14,600 Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net Income Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 b. Perform a vertical analysis, showing each Income statement component as a percentage of sales for each year.