Income statements for Jordan Company for Year 3 and Year 4 follow. JORDAN COMPANY Income Statements...

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Income statements for Jordan Company for Year 3 and Year 4 follow. JORDAN COMPANY Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income Year 4 $201,600 143,200 20,200 13,000 3,200 $179,600 22,000 6,100 $15,900 Year 3 $181,600 121,200 18,200 15,000 5,200 $159,600 22,000 3,500 $18,500 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. Income statements for Jordan Company for Year 3 and Year 4 follow. JORDAN COMPANY Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income Year 4 $201,600 143,200 20,200 13,000 3,200 $179,600 22,000 6,100 $15,900 Year 3 $181,600 121,200 18,200 15,000 5,200 $159,600 22,000 3,500 $18,500 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.

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a Horizontal Analysis Sales Percentage Change Year 4 Sales Year 3 Sales Year 3 Sales 100 Percentage Change 201600 181600 181600 100 Percentage Change 20000 181600 100 Percentage Change 01099 100 Perce... View the full answer