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Income statements for Puppy Daycare Company for Year 3 and Year 4 follow: Items Sales Cost of goods sold Selling expenses Administrative expenses Total
Income statements for Puppy Daycare Company for Year 3 and Year 4 follow: Items Sales Cost of goods sold Selling expenses Administrative expenses Total expenses Income before taxes Year 4 $125,000 Year 3 $110,000 65,000 40,000 15,000 18,000 24,000 22,000 104,000 80,000 21,000 30,000 4,200 7,500 $ 16,800 $ 22,500 Income tax 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 4. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year Note: Round percentages to 1 decimal place. Negative amounts should be entered with a minus sign. Sales Cost of goods sold Selling expenses Administrative expenses Total expenses Income before taxes Income taxes Net income Required A Required B Puppy Daycare Company Horizontal Analysis of Income Statements Year 4 0 Year 3 % Change over Year 3 $ 0 $ 0 Required A Required B > Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. Note: Round percentages to 1 decimal place. Sales Cost of goods sold Selling expenses Total expenses Administrative expenses Income before taxes Income taxes Net income Puppy Daycare Company Vertical Analysis of Income Statements Year 4 % of Sales Year 3 % of Sales 0 0.0 0 0.0 $ 0 < Required A 0.0 $ Required B > 0 0.0
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