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Income statements for Stuart 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. \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ STUART COMPANY } \\ \multicolumn{1}{|c|}{ Horizontal Analysis of Income Statements } \\ \hline Sales & \multicolumn{2}{|c|}{PercentageChangeoverYear3} \\ \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 Net income (loss) & & \\ \hline \end{tabular} Income statements for Stuart 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. \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ STUART COMPANY } \\ \multicolumn{1}{|c|}{ Horizontal Analysis of Income Statements } \\ \hline Sales & \multicolumn{2}{|c|}{PercentageChangeoverYear3} \\ \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 Net income (loss) & & \\ \hline \end{tabular}

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