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Income statements for Jordan Company for Year 3 and Year 4 follow:

a. horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. b.vertical analysis, showing each income statement component as a percentage of sales for each year.

JORDAN COMPANY \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ Horizontal Analysis of Income Statements } \\ \hline & \multicolumn{2}{|c|}{ Percentage Change over Year 3 } \\ \hline Sales & & % \\ \hline Cost of goods sold & & \\ \hline Selling expenses & & \\ \hline Administrative expenses & & \\ \hline Interest expense & & \\ \hline Total expenses & & \\ \hline Income before taxes & & \\ \hline Income taxes expense & & \\ \hline \multicolumn{1}{|c|}{ Net income (loss) } & & \\ \hline \hline \end{tabular} \begin{tabular}{|l|l|l|l|l|} \hline \multicolumn{4}{|c|}{ JORDAN COMPANY } \\ \multicolumn{1}{|c|}{ Vertical Analysis of Income Statements } \\ \hline & \multicolumn{2}{|c|}{ Percentage of Sales Year 4 } & \multicolumn{2}{c|}{ Percentage of Sales Year 3 } \\ \hline Sales & & % & & % \\ \hline Cost of goods sold & & & & \\ \hline Selling expenses & & & & \\ \hline Administrative expenses & & & & \\ \hline Interest expense & & & & \\ \hline \multicolumn{1}{|c|}{ Total expenses } & & & & \\ \hline Income before taxes & & & & \\ \hline Income taxes expense & & & & \\ \hline \multicolumn{1}{|c|}{ Net income } & & & & \\ \hline \end{tabular}

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