Matuska Tools Corporation’s income statements follow.

Required

1. Prepare a multistep income statement for 2013 and 2014 showing percentages of net sales for each component (e.g., cost of goods sold divided by net sales). (Round percentages to one decimal place.)

2. Did income from operations increase or decrease between 2013 and 2014? Write a short explanation of why this change occurred.

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Matuska Tools Corporation Income Statements For the Years Ended July 31, 2014 and 2013 2014 2013 Revenues: $525,932 $475,264 Net sales Interest income 800 700 Total revenues $526,732 $475,964 Costs and expenses: Cost of goods sold Selling expenses General and administrative expenses Interest expense Total costs and expenses $234,948 $171,850 161,692 150,700 42,086 62,866 3,600 $463,106 $ 63,626 850 $365,486 $110,478 Net income