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Income statement for Gaidar Company for 2014 and 2015 follow.

GAIDAR COMPANY Income Statement
	2015			2014
Sales	$	300,000		$	250,000
Cost of goods sold		192,000			150,000
Selling expenses		30,000			24,000
Administrative expenses		15,000			20,000
Interest expense		6,000			8,000
Total expenses	$	243,000		$	202,000
Income before taxes		57,000			48,000
Income taxes expense		14,000			12,000
Net income	$	43,000		$	36,000

Required

a.

Perform a horizontal analysis, showing the percentage change in each income statement component between 2014 and 2015. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (i.e., .234 should be entered as 23.4).) GAIDAR COMPANY Horizontal Analysis of Comparative Income Statement Percentage Change over 2014 Sales % Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) %

b.	Perform a vertical analysis, showing each income statement component as a percent of sales for each year. (Percentages may not add exactly due to rounding. Round your answers to 1 decimal place. (i.e., .234 should be entered as 23.4).)

	GAIDAR COMPANY Vertical Analysis of Comparative Income Statement Percentage of Sales 2015 Percentage of Sales 2014 Sales % % Cost of goods dold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income % %

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