(Learning Objective 2, 4: Aggregating information for presentation on the income statement) Ryan’s Home Repair Services had the following balances at the end of 20X4 and 20X5.

❙ Requirements 1. Assuming that Ryan would like to disclose no more than what is required by accounting standards, with the maximum level of aggregation possible, prepare an income statement to such effect.

2. Why would it not be possible for Ryan to simply show a three-line income statement, one that simply lists total revenue, total expenses and net profi t?

3. How should Ryan decide which line items are important enough to be shown separately on the income statement and which ones to aggregate?