AshvinDon't upload image please Income statements for Walton Company for Year 3 and Year 4 follow:WALTON COMPANYIncome StatementsSalesCost of goods sold.Selling expensesAdministrative expensesInterest expenseTotal expensesIncome before taxesIncome taxes expenseNet incomeYear 4$201,000143,70021,90013,0003,700$182,30018,7006,200$ 12,500Year 3$181,000121,70019,90015,0005,700$162,30018,7003,200$ 15,500Requireda. 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.

HORIZONTAL ANALYSIS OF FINANCIAL STATEMENTHorizontal Analysis is one of the important analysis…

Income statements for Walton Company for Year 3 and Year 4 follow: WALTON 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 $201,000 143,700 21,900 13,000 3,700 Year 3 $181,000 121,700 19,900 15,000 5,700 $182,300 $162,300 18,700 18,700 6,200 3,200 $ 12,500 $ 15,500 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 Walton Company for Year 3 and Year 4 follow: WALTON 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 $201,000 143,700 21,900 13,000 3,700 Year 3 $181,000 121,700 19,900 15,000 5,700 $182,300 $162,300 18,700 18,700 6,200 3,200 $ 12,500 $ 15,500 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.

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter12: Financial Statements, Closing Entries, And Reversing Entries

Section: Chapter Questions

Problem 3E

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