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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 expenses Income before taxes Income tax expense Net income Year 4 $125,000 65,000 15,000 24,000 104,000 Required A Required B 21,000 4,200 $ 16,800 Year 3 $110,000 40,000 18,000 22,000 80,000 30,000 7,500 $ 22,500 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. Complete this question by entering your answers in the tabs below. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. Note: Round percentages to 1 decimal place. Negative amounts should be entered with a minus sign. Puppy Daycare Company Horizontal Analysis of Income Statements Voor A Vaar 2

Income statements for Puppy Daycare Company for Year 3 and Year 4 follow: 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. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. Note: Round percentages to 1 decimal place. Negative amounts should be entered with a minus sign

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