Consider the facts presented in S1-12 for Elegant Arrangements Corporation.
Requirements
1. Review the income statement prepared in S1-12. Evaluate the results of 2012 operations for Elegant Arrangements Corporation. Was the year good or bad?
2. If the company’s service revenue was 20% less than reported in S1-12, how will the net income (loss) change?
3. If the company’s salary expense was 20% more than reported in S1-12, how will the net income (loss) change?