Exercise 4-13B Multistep income statement In Year 1, Image Incorporated sold land for $82,000 cash. The land had originally cost $50,000. Also, Image sold inventory that had cost $176,000 for $265,000 cash. Operating expenses amounted to $41,000. Required a. Prepare a Year 1 multistep income statement for Image Incorporated. b. Assume that normal operating activities grow evenly by 10 percent during Year 2. Prepare a Year 2 multistep income statement for Image Incorporated. c. Determine the percentage change in net income between Year 1 and Year 2. d. Should the stockholders have expected the results determined in Requirement e? Explain your answer. EXERCISE 4-13B a. Image Incorporated Income Statement For the year ended December 31, Year 1 Sales Revenue Net Income Expenses Income Items $265,000 b. Image Incorporated Income Statement For the Year ended December 31, Year 2 Sales Revenue Net Income c. The percentage change in net income: d. If they look at %. $291,500 $52,800 income, then this result would have been expected. Shareholders must be careful when only looking at the amount because there may be items below operating income.