The April 1996 issue of the Journal of Accountancy includes an article by Dennis R. Beresford, L. Todd Johnson, and Cheri L. Reither entitled "Is a Second Income Statement Needed?"

\section*{Instructions}

Read the article and answer these questions:

(a) On what basis would the "second income statement" be prepared? Briefly describe this basis.

(b) Why is there a perceived need for a second income statement?

(c) Identify three alternatives for reporting the proposed measure of income.