In Year 1, Kim Company sold land for $108,000 cash. The land had originally cost $50,000. Also, Kim sold inventory that had cost $191,000 for $288,000 cash. Operating expenses amounted to $42,000.

Required

a. Prepare a Year 1 multistep income statement for Kim Company.

B. Assume that normal operating activities grow evenly by 16% during Year 2. Prepare a Year 2 multistep income statement for Kim Company.

c. Determine the percentage change in net income between Year 1 and Year 2. (Round your answer to one decimal place.)

d. Should the stockholders have expected the results determined in Requirement c?

KIM COMPANY Income Statement For the year ended December 31, Year 1 Expenses Non-Operating Items $ b. Assume that normal operating activities grow evenly by 16% during Year 2. Prepare a Year 2 multistep income statement for Kim Company. KIM COMPANY Income Statement For the year ended December 31, Year 2 Expenses b. Assume that normal operating activities grow evenly by 16% during Year 2. Prepare a Year 2 multistep income statement for Kim Company. KIM COMPANY Income Statement For the year ended December 31, Year 2 Expenses Non-Operating Items c. Determine the percentage change in net income between Year 1 and Year 2. (Round your answer to one decimal place.) Net income Net income by % d. Should the stockholders have expected the results determined in Requirement c? Yes ONo